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Alice in Free Speech Wonderland: "Personal Corporatehood" as response to latest victory of corporations

February 3rd, 2010 No comments

Further to my preceding posts on corporations and free speech, I invite others to read this semi-serious piece in Truthout that examines the implications of the United Citizens vs. FEC decision:

Personal Corporatehood: Coping With the Reason Divided of Citizens United

The author, Randall Amster suggests that in the wake of the latest Supreme Court case, ALL citizens ought to abandon personal responsibility and liability and incorporate themselves. Amster is a J.D., Ph.D., teaches peace studies at Prescott College, and is executive director of the Peace & Justice Studies
Association.

I quote liberally (emphasis added):

There’s great consternation brewing over the recent Supreme Court
decision that cements and extends the misbegotten logic of “corporate
personhood,” and rightly so. Surely, one of the most farcical and
tortuous doctrines ever established in our system of jurisprudence,
this conflated concept has drawn the ire of (small-d) democrats at
least as far back as Thomas Jefferson, who wrote in 1816, “I hope we
shall … crush in its birth the aristocracy of our moneyed
corporations which dare already to challenge our government in a trial
of strength, and bid defiance to the laws of our country.” …

Still, the notion of “corporate personhood” remains
something of a misnomer. In our system, as now expanded by the Supreme
Court, corporations actually enjoy more rights than individuals do in
many ways. To wit: liability shields, rights of transfer, political
access and influence, subsidies, laissez-faire regulation, freedom of
movement, self-determination, self-governance, tax breaks etc. In
particular, when it comes to political speech, corporations are now
essentially unfettered in their freedom, something that we mere mortals
have yet to fully secure.
Consider the language of the court’s recent
ruling: “If the First Amendment has any force, it prohibits Congress
from fining or jailing citizens, or associations of citizens, for
simply engaging in political speech.” …

President Obama called the decision “a major victory
for big oil, Wall Street banks, health insurance companies and the
other powerful interests that marshal their power every day in
Washington to drown out the voices of everyday Americans.” What wasn’t
immediately clear is whether he intended this as a lamentation or a
mere observation of political reality. Either way, he was in essence
stating a working fact, namely that whatever shards of democracy and
the “will of the people” had existed up to now, the pretense is all but
gone and corporations will openly run the show. I suppose this has the
virtue, in any event, of being a more honest representation of how
things actually transpire.
The question is where things will go now
that this critical threshold has been crossed.

Most likely, this ruling is a harbinger of further
extensions of corporate rights and powers. A broad mandate and a
willing court will impel corporations to take on even more of the
qualities ordinarily associated with individuals
, as noted in the
SCOTUS blog’s analysis of the decision: “It is not too much to expect
that lawyers for corporate America may well be looking to explore the
outer possibilities of their clients’ ‘personhood’ and new-found
constitutional equality.”
[link added] There previously had existed a founding
principle that “natural persons” and “artificial persons” were separate
and distinct entities under the law, with the former holding historical
priority in our constitutional framework. By now, that distinction has
been blurred to such an extent as to be effectively meaningless,
as
evidenced by a 2008 Federal District Court ruling in which it was
proclaimed by the judge that “Blackwater is a person….”

If Blackwater is a person, I want out. Indeed, this
suggests a strategy that “natural persons” might take in embracing the
implications of this unrestricted corporate world. If a corporation can
become a person, then by implication a person can become a corporation.
I am thus advocating a new doctrine of “personal corporatehood,” in
which we should all avail ourselves of the enhanced rights granted to
“artificial persons” in our system.
People should begin taking steps to
incorporate themselves immediately. …

Just imagine the benefits. When someone asks you for
a favor, you can off-puttingly reply, “I have to check with my board of
directors at next month’s meeting; someone will get back to you then.”
When you want to meet with your Congressperson on matters you feel
strongly about, the receptionist will announce, “Senator, a corporation
is here to see you,” which will likely get you instant access. If you
go public, you can sell shares in yourself and make a tidy sum (just be
sure to retain a controlling interest). If someone irritates you or has
something you want, you can likely get the Marines sent in to deal with
them. You can avoid having to appear personally at court hearings,
sending your hired-gun attorney instead. And you can’t be thrown in
jail, since a corporation itself cannot be imprisoned. See?

At the end of the day, we “natural persons” can try
and fight city hall on this one, or we can get in the game and embrace
the benefits of artificiality. In a world of surfaces, where
profiteering masks as politics and gerrymandering as justice, this may
well be the best of all strategies for survival.

Amster is pretty much right in his discussion of the now rather superior rights that corporations have over individuals. While we can`t really abandon our individual identities, by incorporating we can shield assets by limiting liability and maybe, even double or triple our vote, if courts follow their logic and acknowledge that voting is simply a form of speech.

Or we could find ways to step back from the Alice in Wonderland nonsense that creeping corporatism and “conservative” Supreme Court justices have led us to.

Free speech 2: Finally, someone else – Larry Lessig – gets it on state-created corporations and speech!

February 3rd, 2010 No comments

Further to my preceding post on speech and corporations, I highly recommend Lawrence Lessig`s insightful short piece, “The Principled and Pure Court? A Reply to Glenn Greenwald” (HuffPo, January 27).

For those who haven`t seen it yet, I take the liberty of quoting liberally (emphasis added):

Salon‘s Glenn Greenwald
is just about the most persistent and effective critic of money in
politics today. He is among the least starry-eyed reporters studying
Congress. But his essay defending the Court’s judgment in Citizens United would have been better had he sprinkled a bit of the skepticism he has for Congress on the words penned by the Court….

The First Amendment, Greenwald tells us, is an absolute. It applies
not to “persons”; it “simply bans Congress from making any laws
abridging freedom of speech.” This law plainly banned these entities —
whether persons or not — from a freedom of speech. Ergo, this law is,
and should have been found to be, unconstitutional.

Sounds good. Sounds principled. Sounds refreshingly different from
anything else that happens within the reach of DC (i.e., good and
principled).

But apply that same test to the following (not so hypothetical) free
speech case: A bunch of doctors practice in family planning clinics.
The government issues a rule that says certain doctors in certain
clinics are not allowed to discuss abortion as a method of family
planning. They can talk about abstinence. Or condoms. But they are not
allowed to advise their pregnant patients that they have the liberty to
abort their fetus.

Sounds like — under the First Amendment Greenwald describes — a
simple case. Whether or not doctors are persons (and at least some are
just mere mortals), they should have the freedom to speak. Advising
someone about a legal medical procedure is among the core freedoms one
would expect a Free Speech Clause to serve.

Yet in 1991, in an opinion by Chief Justice Robert’s former boss, Chief Justice Rehnquist, in the case of Rust v. Sullivan,
the Court found no First Amendment problem at all with the government’s
restriction on doctors’ speech. Indeed, it wasn’t even a difficult case
according to the Court (“no question but that the statutory prohibition
contained in § 1008 is constitutional.”)

Why? How? Well the doctors at issue worked in family planning
clinics that had received at least some of their funds from the
government. And in exchange for that benefit, the government was free
to gag the doctors however it wished.
The doctors were free of course
to work in a family planning clinic not funded at all by the government
(for of course, there are plenty of those) (that’s a joke). But so long
as the doctors take this benefit from the government, they’ve got to
live by the rules of the government, at least so long as those rules
serve some legitimate state end.

So how is this case related to Citizens United? For the law wasn’t
applying exclusively to entities that had received something from the
government. It was applying to all corporations.

But of course, corporations do receive a gift from the government.
The government limits the legal liability of investors in that
corporation in exchange for their risking their capital to spur
innovation and growth. That benefit is significant. And the First
Amendment question is whether in granting that benefit, the state would
be free to limit the political advocacy that corporations engage in.

It seems astonishing to imagine the state couldn’t. State law has
historically had wide freedoms to condition the corporate form as they
wished. This fact has led some, including my colleague, Sina Kian, to
argue that Citizens United is less than people think. That the decision
notwithstanding, states could build this limit into their corporate
charters. Or that maybe even Congress could induce states to do the
same. The question then would be the reason the government had for
demanding the entity give up this liberty in exchange for the corporate
form. Traditionally, the burden of that question is the easiest for the
government to meet — is there any state interest at all?
In Rust, the
interest was that that government didn’t like abortion.

But I agree with Greenwald that there is something unseemly in the
idea that the government could restrict the speech of a class because
it doesn’t like the speech of that class.

Yet this is the most confused part of the commentary (and reaction)
of most to this kind of regulation. If the government’s reason for
silencing corporations is that they don’t like what corporations would
say — if it thinks, for example, that it would be too Republican, or
too pro-business — then that’s got to be a terrible reason for the
regulation, and we all ought to support a decision that strikes a law
so inspired.

That, however, is not the only, or the best, justification behind
the regulations at issue in Citizens United. Those rules not about
suppressing a point of view. They’re about avoiding a kind of
dependency that undermines trust in our government.
The concentrated,
and tacitly, coordinated efforts by large and powerful economic
entities — made large and powerful in part because of the gift of
immunity given by the state — could certainly help lead many to
believe “money is buying results” in Congress. Avoiding that belief —
just like avoiding the belief that money bought results on the Supreme
Court — has got to be an important and valid interest of the state.

If the Court really means to say that entities that fund or create
other entities can’t limit the power of those entities to speak — so
the government can’t stop doctors from talking about abortion, or the
IRS can’t stop non-profits from talking about politics — then we
really have crossed a Bladerunner line. For that conclusion really does
mean that these entities were “created with certain unalienable
rights,” even though they were created by a pretty pathetic creator —
the state.

My point is not that the state’s power to condition should be
unlimited. The point instead is that it’s not so simple, or absolute,
as Greenwald would have it. And given the true complexity of these
evolving and complicated doctrines, it is certainly fair to be critical
in the extreme of this decision by the Court, favoring speech that most
believe it naturally likes (unlike abortion-speak), in a decision that
ignores the judgment of Congress about the conditions under which the
integrity of that body, or any election, proceeds.

It seems to me that Lessig doesn`t go far enough, in questioning as I have all of the negative consequences of the state grant of limited liability to the owners of corporations. Surely any libertarian worth his salt should do so.

But Lessig has understated his own case: the government has a valid interest in seeking to prevent not only the appearance that “money is buying results”, but actual corruption and sweet deals as well. Surely the Constitution was not intended to let wealthy individuals to get a leg up on everyone else by laundering their speech through a company and on a tax-deductible basis.

Further, Lessig fails to noted that the Supreme Court could easily have avoided overturning laws and decades of precedents and public understanding – and could have provided much-needed clarity – by concluding that the statements coming from corporations are NOT entitled to protection as First Amendment “speech”, because corporations are legal entities and not themselves actual individuals capable of “speaking” for purposes of the First Amendment. Such a decision would leave all corporate spokesmen and shareholders bearing, like the rest of us do, personal liability and moral sanction for false or offensive speech (though insurance or indemnification by others might of course be be available).

But via the growth of concentrated power enabled by the state establishment of the corporate form, we appear to be rapidly becoming a nation a county “of the corporation, by the corporation and for the corporation”.

Banning corporate political speech (and campaign contributions) would dampen the rent-seeking pressures that have fuelled to the growth of the state; such steps would also invigorate public discourse – and build greater national trust – by making it clear WHO is actually doing the talking (or letting the body politic discount whenever speech is anonymous).

Supreme Court, others confused about "speech" because they ignore (1) that corporations are not themselves persons, but creatures of the state

February 3rd, 2010 No comments

Further, virtually everyone has been ignoring (2) WHY it is that there is so much concern about corporations and their influence on (and vulnerability to) government: namely, states have allowed individuals (and now other corporations) to form separate, limited-liability legal entities that cut off their owners for any responsibility for the damages that such corporations may do to others.

One of the chief direct consequences of the use of the state to create corporations, as I have discussed in many posts (as the Mises` resident radical enviro), has been massive risk-shifting to the public and cycles of public pressure to use government to rein in corporations. In this, the better organized, longer-lived  and deeper pocketed corporations always having a leg up on gaming the drafting and interpretation of laws and regulations, and using government to steal further from/shift risks to the public at large and to hobble competitors. Thus the indirect consequences of the grant of a limited liability corporate personhood include not simply the financial crisis, but the growing distrust of government, corporations, politicians and voters of a different political stripe and the ramp-up in reasons to fight over the wheel.

I think that the Supreme Court decision in Citizens United v. Federal Election Commission is wrong, chiefly because the First Amendment is about HUMAN speech, while corporations – though associations of humans – have a distinct legal identity and very different characteristics.

The decision is also wrong because the Roberts court fails to acknowledge that just as the state can create corporations, so also can it condition their existence on refraining from political speech (making political contributions, etc.), or regulate their speech via excise taxes or the like (just as the federal government so conditions the grant of income tax-free status to religious groups and non-profits on express restrictions on political speech). But far better to attack the problem at the root of incorporation (or at the Constitutional level) than by a host of federal-level laws and regulations – including those remaining on churches and NPOs.

I have commented on these points in a blog thread at the libertarian/right-leaning legal blog, The Volokh Conspiracy.

TokyoTom says:

Leo Mrvin: I haven’t given this much thought, but is it really inconceivable that if the First Amendment didn’t protect corporations, individuals who wanted to pool resources in mass media vehicles for political speech would do so without the benefit of limited liability?

Dilan EsperYou can make this argument, but it begs the question, because then the issue is simply re-stated as “can the government condition limited liability on individuals giving up their associational speech rights?”. 

In this case the question conflates the states which approve corporate status with the federal government, but why would such a question prove difficult? The federal government provides tax exemptions to religious and other groups on the express condition that they refrain from political speech.

It doesn‘t take much digging to see how profoundly the grant of limited liability to corporate shareholders has snowballed into the massive struggles for favor and regulation that we see today. Confused decisions that corporations (as opposed to those who own and staff them) have Constitutional rights has greatly contributed to this [- even as these decisions constantly acted to shift power from citizens and the states to the federal government] . (Likewise, the federal income tax has also perversely entangled the state in religious organizations and political speech.)

TokyoTom says:

If Congress can Constitutionally limit the speech of people who choose to associate as non-profit churches etc., why cannot it likewise limit the speech who choose to accept the favor of a state grant of limited liability?

 

John Dewey says:

The discussions about whether corporations have the rights of people and about whether the Founding Fathers could have considered corporations — is any of this relevant?

The First Amendment protects a citizen from a powerful government which would decide what speech the citizen would be allowed to read or hear. It’s not a right granted to a speaker, but a right granted to a listener or reader. As such, it makes no difference whether the speech being protected comes from a single person, a non-profit organization, a union. a church, or a corporation. It is not the speaker but rather the speech — and the right of the citizen to hear it — which is being protected.

TokyoTom says:

John, I disagree. The First Amendment is about the peoples‘ rights to gather and to speak privately and publicly, including reporting on government.

Corporations are not people — but legal fictions that are creatures of their owners and the State, which protects their owners by giving them a special grant of limited liability. Corporations may parrot the words of particular people with in the firm, but they [corporations], like parrots, are not people and do not “speak” themselves. (Actually, this is unfair to parrots and other animals, which deliberately attempt to convey meaning to others, and not as a sock puppet for another person/animal/entity.)

While I‘m no fan of corporate income taxes, just as the federal government can condition “non-profit” status on a waiver of political speech rights by churches and other forms of legal entities, so states condition the grant of corporate status on the owners‘ acceptance that they cannot use the corporation as a political mouthpiece (such a use could be made expressly ultra vires), and so should states and the federal government be able to limit or tax political speech by corporations.

Not only would this be good law, but in my view entirely good policy by doing much to slow rent-seeking via large corporations, by removing incentives for wealthy investors to influence public officials and public debate. Let the rich (and others) speak for themselves – anonymously if they choose – but we can and should stop the money-laundering of speech through corporations.

The Roberts court showed it didn‘t have the strength of its convictions by upholding the part of McCain-Feingold that mandates disclosure of who is funding speech — in my view, this is incorrect. Anonymous speech very much SHOULD be allowed – but only for individuals and organizations that have not been granted limited liability by the state.

The chief sticky side issue here is the political gagging of churches and NGOs arising from the desire for favorable tax treatment [on this, the solution lies both in ending limited liability and in ending corporate income taxes].

Great discussion of banking and monetary issues by Larry White of the Mercatus Center at Guatemala's "University of Free Marketers"

December 21st, 2011 No comments

I just ran across at George Mason University’s Mercatus Center a helpful video featuring Lawrence H. White, professor of economics at GMU, discussing “Thoughts on Monetary Policy, Free Banking and Financial Crisis”.

In watching the video, I noticed that White’s inerviewer was Fritz Thomas, head of the School of Economics at the Universidad Francisco Marroquín, an institution I hadn’t heard of.  A little more digging shows this to be a relatively new (founded in 1971) but highly regarded private university in Guatemala founded by a student of Austrian economics, “Muso” Manuel Ayau.

Ayau, who died on August 4, 2010, was a businessman, educator and politician, a member and President of the Mont Pelerin Society, on the board of directors of the Liberty Fund and a trustee of the Foundation for Economic Education. In Guatemala, he was a member of congress from 1970–74, a presidential candidate in the 1990 elections, and served in other public capacities. Ayau founded Samboro,the largest tile producer in Central America, was the founding president of Guatemala’s stock exchange and served on the boards of IBM Latin America and of Guatemala’s central bank. Ayau also founded the Centro de Estudios Economico-Sociales; CEES grew into UFM, but remains extant and is now housed at the Ludwig von Mises Library on the UFM campus.

UFM, which is nicknamed the “University of Free Marketers,” describes its mission as “to teach and disseminate the ethical, legal and economic principles of a society of free and responsible persons.” Earlier this year Reason.tv posted a brief description of UFM and a 9 minute video: “Universidad Francisco Marroquin (aka University of Free Marketeers)” Says Reason, “In other words, the people at UFM want the people of Guatemala to be free. This is, of course, no small task in a country that has been plagued by political corruption and socialist policies for so long.

These days, the same can be said of the United States, though it is not so clear how much US citizens themselves want to be free.

More on UFM and Ayau at this 2010 article in the Latin Business Chroncle and in this 2008 article in the Los Angeles Times. Here is a link to the Manuel F. Ayau Society, which has been established to honor his memory.

Lawrence White is a distinguished expert on monetary theory and banking history. More on his background  here.

And here, at last, is the link to the 41-minute video at UFM!

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Post-Fukushima, signs that 'Arab Spring' and #Occupy movements have arrived as Japanese seek to wrest control of civil society from Government.

December 16th, 2011 No comments

[Note: Kiyoshi Kurokawa, one of the co-aothors of the op-ed described below, headed up a recent and criticasl report regarding the Fukushima accident.]

Have the concatenation of the Fukushima meltdows on the heels of the Tohoku earthquaketsunami disaster FINALLY spurred ordinary Japanese to act after nearly three decades of disastrous bungling and irresponsible economic management by the Japanese government? The answer appears to be a modest yes.

The Japan Times ran an interesting article on December 1, by two policy wonks at Japan’s National Graduate Institute for Policy Studies (Hiromi Murakami, assistant professor and Kiyoshi Kurokawa, M.D., an academic fellow) (emphasis added):

Fukushima crisis fueling the third opening of Japan

Prime Minister Yoshihiko Noda’s announcement that Japan would join talks on a Pacific free trade agreement (FTA) triggered a nationwide debate over whether to open Japan’s market.

While this is certainly a useful discussion, the issue facing Japan is far larger. The Fukushima nuclear power plants crisis further exacerbated the problems Japan already had: an aging society, the hollowing out of manufacturing industries, a huge fiscal deficit, a widening income gap, and the sustainability of its governing system.

The fundamental question is thus not one of joining FTAs. Rather it is how we Japanese can carry forward a third “opening” and depart from our aging, dysfunctional system.

The Fukushima disaster has shaken the foundations of our system as it has proven all of its fundamental assumptions false. Fukushima turned Japanese citizens from believers into skeptics of the government.

Deep disappointment in the government has transformed people from apathetic bystanders to proactive citizens, creating innovative financial schemes without relying on the government and committing themselves to energy conservation and reduced dependence on nuclear energy by shifting their priorities and preferences.

Neither the shock of the Lehman bankruptcy, the asset and stock bubble collapses, nor 20 years of stalled economic growth, have had much of an impetus to change, but Fukushima ignited in Japan a great transformation at the grass-roots level. Just as the “Spring” movements have been demanding change in the systems of Arab countries, so civil society has finally started to blossom in Japan. Because Japan’s rather unhealthy one-party-dominated “democracy” has lasted over a half-century, the country is still inexperienced in translating fragmented individual voices into balanced public policies. Thanks to the spread of tools like Twitter and YouTube, and the catalyst of foreign nongovernment organizations, linking these voices may eventually lead to long-overdue domestic reform, altered voting patterns and changes in Japan’s outlook.

Since the Meiji Era, we have had complete confidence in our bureaucratic system and the strong policymaking institution of the “Iron triangle,” backed by strong economic growth. This iron triangle continued to survive until today partly because people continued to trust in bureaucracy and political/social institutions. This myth was completely broken after the Fukushima disaster, which revealed to everyone that there was no functioning system in place to deal with the crises. People watched as politicians produce lists of excuses for not cooperating and bureaucrats fought for jurisdiction while failing to make decisions, terrified of taking risks in such an unprecedented situation.

Instead of relying on the government, people started to act independently through grassroots and civil movements in various parts of Japan. In other words, the third opening, or the great transformation in values and social norms, is finally occurring in Japan.

Led by the governing class of samurai, Japan experienced its first opening during the Meiji Restoration, triggered by the threat posed by Commodore Matthew Perry’s Black Ships. The second opening was led by Gen. Douglas MacArthur, when the Allied occupation government initiated reforms and political purges after our disastrous defeat in World War II. While the past two openings were driven by external factors in a top-down fashion, the third opening has been triggered internally by the Fukushima disaster. It is a civil-sector-driven, bottom-up transformation.

While the authorities failed to deliver substantive action, individuals started to act. Many donated money for the first time and participated in voluntary activities; scientists gathered to offer credible information and explanations via Twitter; voluntary individuals in various regional areas monitored radioactivity levels and gathered data through the Internet that they made immediately made public; and parents organized and demanded that the authorities measure ground and food radioactivity levels in kindergartens and schools, which quickly became the norm. Japanese citizens now strongly demand transparency, so that they can judge how to protect themselves.

Energy shortages due to the Fukushima disaster have had a profound impact on individuals’ priorities and lifestyles. Households and corporations achieved 18 percent energy conservation last summer in Tokyo through various efforts. How to better preserve the environment for future generations has now become a part of our thinking. LED lights, expensive household fuel cells and wood-burning stoves are selling surprisingly well; and the demand for solar panels is exceeding supply.

Innovative trials are now taking place that will have even greater effects on a larger social and economic scale. The “2:46 Quakebook,” promptly published online worldwide, established new ways to donate money to Tohoku. Innovative microfinancing schemes have been operating to help small businesses that are desperately in need of cash at a time when traditional financial institutions are reluctant to take risks. The Tomodachi Initiative, a public-private partnership led by the governments of Japan and the United States, whose programs include the fostering of entrepreneurship, is also making an impact.

Fukushima gave us a great opportunity to transform our way of life and recognize that individuals can make difference in the society if they act together. Long-overdue reforms are possible today as established barriers weaken and room for innovation emerges. For its democratic system to truly function, Japan’s infant civil society still needs to learn from other societies by establishing horizontal links in various sectors, including NGOs, researchers and scientists. This is a chance to get globally connected and gather global expertise.

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Gonzalo Lira is a shrill conservative who loudly supports the "Occupy" Movement

December 10th, 2011 No comments

Allow me to shill for Gonzalo Lira, a Chilean-American novelist, filmmaker, founder of the Strategic Planning Group, and an economic blogger who contributes  to Zero Hedge, naked capitalism, Seeking Alpha and Business Insider.

I ran across an interesting blog post by Lira that, in contrast with other pieces on LvMI (such as George Reisman‘s), expresses strong support for the “Occupy” movement. 

Lira kindly gave me permission to cross-post his piece. (I note that I seem to be more of a classic liberal and skeptic of government than Lira, and so I don’t fully endorse his ‘conservative’ positions.)

Why I Support The Occupy Movement (emphasis added)

I am a Conservative—and proud of it.

I am against abortion, including in the case of rape or incest. I don’t believe in any form of entitlement program, much less the concept of a welfare state. I am opposed to progressive income taxes—and in fact am against using the tax code as a vehicle to foment or discourage any social goal, as I think it inevitably leads to the tax code being gamed by interested parties (as has indeed happened with the U.S. tax code, beholden to paid lobbyists who have carved out so many loopholes that it looks more like a sieve than a tax code). Thus I’m in favor of a flat tax: Zero-percent for citizens, 20% for corporations.

I am in favor of a reduced government, a reduced military presence, compulsory military service, and a compulsory national guard system requiring 100% citizen participation, similar to the Swiss model. I am completely against foreign military adventurism, foreign military bases, and foreign military aid.

I believe that the government should be the enforcer of the law, and of a regulatory framework which—when it comes to issues affecting the common good—is strict to the point of anal.

For instance, food regulation, financial regulation, building code regulation—all of these regulations obviously serve the common good, and protect us all from unscrupulous people seeking to get an advantage by poisoning or otherwise hurting us all. Thus the government should have a tough regulatory framework—think of it like traffic laws: Tough government regulations that are simple, transparent, and which protect us all from each other, while making our interactions smooth, convenient and graceful.

I don’t have a problem with some people making boatloads of money, while others are homeless. I don’t believe it is the State’s or society’s or the government’s responsibility to take care of you in your old age—it is your responsibility.

Gun rights—yes. Gay rights—no. States’ rights—yes. Affirmative Action—no.

There are only three issues on which I don’t toe the Hard Right line: The death penalty, the war on drugs, and health care.

I am against the death penalty—not because I think that the State and society do not have the right to execute one of its members: They do, to my way of thinking, if the citizen has committed an especially heinous act. But the death penalty is permanent: You can’t take it back if you screw up. And since no justice system made by fallible men is infallible, mistakes are inevitable. So I am of the opinion that it’s better to have 1,000 murderers sit in jail at society’s expense, than allow one innocent man be put to death. Because you can free an innocent man after twenty years in jail for a crime he didn’t commit—but you can’t bring back the dead.

I am against the War On Drugs: First of all because it doesn’t stop the consumption (and thus flow) of illegal recreational drugs; second because I believe recreational drugs (up to and including cocaine, heroin, meth and acid) ought to be legalized and taxed, like booze, and its production regulated for safety standards, again like booze; third, because the “War On Drugs” has created a huge penal class—citizens who have spent time in jail for non-violent offenses, and thus are marginalized from general society because of this stigma on their record—which hurts people who have committed non-violent infractions, and enriches people who thrive on building and staffing more and more needless prisons.

I am in favor of trashing the current American health care system, and making it either entirely private, or entirely socialist: This hybrid system the United States has not only does not work, it is extraordinarily expensive. The fact that the French of all people spend less of their gross domestic product on their socialist health care system, yet have a lower infant mortality rate and a longer median and average lifespan than people in America, is a wake-up call: If the full-Commie Frenchie system is better and cheaper than the American one, then literally any health care system is better than the one that exists in the United States.

But all in all, I’m a good Conservative. (Though certainly not a Republican—a political party dominated by Neo-Conservatives, who are not Conservative at all, but rather, Corporatists.)

I believe that America should be the land of opportunity and risk: You can fly high—but you can also crash and burn. A society that eliminates risk—that tries to somehow torque risk down with “safety nets” and “systemic protections”—is begging for a Mommy Dictatorship when all is said and done.

Now, why do I go into all this detail about my political beliefs and ideas? Because I want to make clear where I stand, before I come out and say that I am in favor of, and fully support, the Occupy Movement.

The Occupy Movement is inarticulate—but not because of it nonsensical: The protestors are against the travesty that has become the American Republic. And though its origins are on the political Left, it should not be considered a “Leftist” movement.

Rather, it is an anti-Corporatist movement.

It’s core issue is the One-Percenters: As we have currently organized the American Republic, everything seems geared to protecting and enriching the top 1% of the population—to the detriment of the 99% of the population.

The One-Percenters have made huge gains in income over the last 30 years, compared to any other tranche of the population—while the standard of living of the middle and lower classes has actually gone down.

There is less opportunity for the 99%—but more opportunities for the One-Percenters to enrich themselves at the public expense, by way of manipulating the law, the tax code, or the regulatory framework.

There is a revolving door between One-Percenters in the government and the private sector—so the former government employees make it a point to “help” the private sector One-Percenters, at the expense of the public good. Think of the Obama health care “reform”—which helped no one, save Big Pharma and Big Med.

There is zero chance that a One-Percenters who breaks the law will go to prison. He can put toxic substances in food production, inject toxins into groundwater to get at some oil, bankrupt a pension fund, steal and cheat people out of their homes—and there’ll be no consequences insofar as the law is concerned.

The things he might have done might be immoral—they might be despicable—they might even be outright wicked and evil: But they are not “illegal”—because the One-Percenters change the laws by way of their bought-and-paid-for politicians, and thus never do anything “illegal”. They only do things which are immoral, and wrong—and thus not subject to legal punishment.

Yet any member of the 99% caught smoking a little weed will go to jail for 90 days—and have a permanent black mark on his record, severely curtailing his ability to find employment, get a bank account, or otherwise participate in civil society.

How bad is this lawless among the One-Percenters? To give an example: The bankers. Not one banker has been charged with fraud, for the Robo-Signing scandal; for the fraudulent securitization scandal that led to the 2008 Global Financial Crisis; or indeed, for any of the heinous acts of financial terrorism which has essentially held us all hostage, while the banksters have raped and pillaged from us all, by way of bailouts.

How did they rape and pillage our society? By telling us through their bought-and-paid for politicians and media shills, “You better bail us out—or we’ll crash the economy by the bankruptcy of our financial institutions, and put you all out of work.” So we give them literally trillions of dollars to bail them out in 2008 and after—

—and once we bail them out, do they pay us back?

No!—don’t be naive! They don’t pay us back! Instead, they use the bailout monies to pay themselves huge bonuses. After all, as is public record, in 2009, the banks paid their executives more and bigger bonuses than ever before—even though they would have been bankrupt had it not been for the lifeline that we paid for!

Are any of these bastards cooling their heels in jail? No they are not. In other words, we pay—and the banksters get a tan in Tahiti.

And this same pattern happens in every other industry and sector of our economy—in every other area and concern of our society: The One-Percenters get all the breaks, the government “of the people, by the people and for the people” bending over backwards to give this oligarchy all these phenomenal breaks—while the rest of us in the 99% pay. And pay in spades.

This is what the Occupy Movement is against.

As far as I’m concerned, the people currently protesting are a bunch of Lefty, bongo-banging hippie-dippy metro-sexual turds—but that doesn’t make their protest wrong.

And in this case, those Lefty fools are actually right.

And we on the Right should join them.

As Al Gore accurately put it (and trust me, my skin is literally trying to crawl off my flesh as the reptilian part of my brain reacts to me praising something that Al Gore, of all people, has said), the Occupy Wall Street movement is basically a primal scream of democracy.

It is a primal democratic scream that we all feel—Lefties and Righties.

Those Lefty granola-munchers have a putatively granola-munching Lefty in the White House—but they’re out on the street anyway. Why? Because Obama might munch on granola, but he’s about as Lefty as Herbert Hoover.

Don’t get me wrong—Obama ain’t on my team. He’s about as Righty as Adlai Stevenson. No, what Obama is is corporatist—as are all the Democratic politicians. That’s why the Unions and the blacks and the other “approved” Left wing interest groups haven’t been able to co-opt the Occupy Wall Street movement:

The Occupy Movement instinctively—perhaps even inarticulately but accurately—realizes that the traditional “Left” politicians aren’t politicians of principles.

Rather, they are the best politicans money can buy: Corporate politicans bought with coporate money, via K Street lobbyists, and the revolving door between corporate interests and political power.

Just look at Michael Chertoff, the former head of Homeland Security, whom I wrote about here (a piece which by the way earned me my own HSA agent, who dilligently monitors me).

Chertoff headed the HSA under George W. Bush—so he ought to be on my team, Team Right. But he’s not—he’s Team Corporate. He’s a One-Percenter.

Chertoff served as director of Homeland Security, then left for the private sector, where he formed “The Chertoff Group”—which promptly went into business with RapiScan Systems, purveyors of airport bodyscanners.

And so what did Chertoff do? He hit every talk show and media outlet, peddling the bodyscanners.

The corporate media was happy to have him—and not once did they point out that his fear-mongering would make him wealthier. Not once did the corporate media portray Chertoff as what he was—a corporate shill. Not once did the corporate media do its job of informing the citizenry of Chertoff’s conflict of interest.

Instead, the corporate media gave Chertoff a platform, from where he could sell us all on the full-body scanners—lying and saying that they were for “our protection against the terrorists”.

Were the body scanners necessary? No—they have yet to catch a single terrorist. Do they work? No—a determined terrorist can easily defeat them, as has been demonstrated. Are they safe? No—they likely cause cancer, though no one is really sure, because safety testing of the scanners has been proscribed.

Ah, but do the body-scanners pay Chertoff a big phat fee, every time one of those $100,000 machines ($100,000 each!) is deployed in an American airport?

Guess.

Someone like Chertoff isn’t on the “Right” or on the “Left”—someone like Chertoff, or Obama, is on the side of One-Percenters: The interests of the One-Percenters are their interests—versus you and me in the 99%—because they are the One-Percent. They have more in common with each other, than with any paltry political “Left/Right” difference.

Chertoff and Obama certainly have more in common with one another, than either one of them has with us, the people whom they are supposed to serve.

Now, if I have put this issue in terms of class-warfare, it sure makes it sound Marxist—which ordinarily would make me dismiss it. After all, Marx claimed that everything that was bad in a society was the result of “class warfare”—which is bullshit, as far as I’m concerned.

But a broken clock is right twice a day. To my way of seeing things, our society has fallen into an oligarchic trap: We have confused the health and welfare of the top of the social pyramid with the health and welfare of the entire pyramid—and that of course is a mistake. The top can be just fine and dandy—while the rest of society rots, crumbles, and collapses.

This, in a nutshell, is what is happening. This is what the Occupy Movement is protesting. This is something that I support. Because the health and welfare of our society as a whole should never be confused with the health and welfare of the richest 1%.

GL

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David Brooks echoes Hayek’s warnings on ‘Market Morals’ in an observant piece on our crumbling order

December 2nd, 2011 No comments

David Brooks has an excellent op-ed piece in the December 1 New York Times that speaks to the very worrisome and ongoing destruction of crucial social capital – what Hayek called “market morals“, and what Brooks calls the “spirit of enterprise”.

I excerpt liberally from the op-ed (emphasis added):

Why are nations like Germany and the U.S. rich? It’s not primarily because they possess natural resources — many nations have those. It’s primarily because of habits, values and social capital.

It’s because many people in these countries, as Arthur Brooks of the American Enterprise Institute has noted, believe in a simple moral formula: effort should lead to reward as often as possible.

People who work hard and play by the rules should have a fair shot at prosperity. Money should go to people on the basis of merit and enterprise. Self-control should be rewarded while laziness and self-indulgence should not. Community institutions should nurture responsibility and fairness.

This ethos is not an immutable genetic property, which can blithely be taken for granted. It’s a precious social construct, which can be undermined and degraded.

Right now, this ethos is being undermined from all directions. People see lobbyists diverting money on the basis of connections; they see traders making millions off of short-term manipulations; they see governments stealing money from future generations to reward current voters.

The result is a crisis of legitimacy. The game is rigged. Social trust shrivels. Effort is no longer worth it. The prosperity machine winds down.

Yet the assault on these values continues, especially in Europe.

Over the past few decades, several European nations, like Germany and the Netherlands, have played by the rules and practiced good governance. They have lived within their means, undertaken painful reforms, enhanced their competitiveness and reinforced good values. Now they are being brutally browbeaten for not wanting to bail out nations like Greece, Italy and Spain, which did not do these things, which instead borrowed huge amounts of money that they are choosing not to repay.

The estimated costs of these bailouts vary enormously and may end up being greater than the cost of German reparations after World War I. Germans are being browbeaten for not wanting to bail out Greece, where even today many people are still not willing to pay their taxes. They are being browbeaten for not wanting to bail out Italy, where future growth prospects are uncertain.

They are being asked to bail out nations with vast public sectors and horrible demographics. They are being asked to paper over fundamental economic problems with a mountain of currency.

It’s true that Germans benefited enormously from the euro zone and the southern European bubble, and that German and French banks are far from blameless. It’s true that the consequences for the world would be calamitous if the euro zone cracked up. It’s true that, in a crisis, you do things you wouldn’t otherwise do; you do things that violate your everyday values.

But our sympathy should be with the German people. They are not behaving selfishly by insisting on structural reforms in exchange for bailouts. They are not imprisoned by some rigid ideology. They are not besotted with some semi-senile Weimar superstition about rampant inflation. They are defending the values, habits and social contract upon which the entire prosperity of the West is based.

The scariest thing is that many of the people browbeating the Germans seem to have very little commitment to the effort-reward formula that undergirds capitalism. On the one hand, there are the technicians who are oblivious to values. For them anything that can’t be counted and modeled is a primitive irrelevancy. On the other hand, there are people who see the European crisis through the prism of some cosmic class war. What matters is not how people conduct themselves, but whether they are a have or a have-not. The burden of proof is against the haves. The benefit of the doubt is with the have-nots. Any resistance to redistribution is greeted with outrage.

The real lesson from financial crises is that, at the pit of the crisis, you do what you have to do. You bail out the banks. You bail out the weak European governments. But, at the same time, you lock in policies that reinforce the fundamental link between effort and reward. And, as soon as the crisis passes, you move to repair the legitimacy of the system.

That didn’t happen after the American financial crisis of 2008. The people who caused the crisis were never held responsible. There never was an exit strategy to unwind the gigantic debt buildup. The structural problems plaguing the economy remain unaddressed. As a result, the United States suffers from a horrible crisis of trust that is slowing growth, restricting government action and sending our politics off in strange directions.

Europe’s challenge is not only to avert a financial meltdown but to do it in a way that doesn’t poison the seedbed of prosperity. Which values will be rewarded and reinforced? Will it be effort, productivity and self-discipline? Or will it be bad governance, now and forever?

Brooks’ insights are incomplete; he fails to note how government-establish deposit insurance underwrote and capital standards (most government bonds enjoy a 0% risk-weighting under BIS standards) encouraged the irresponsibility of German and other EU banks in lending to Greek and other national governments in the first place.

Right now, the Japanese government only funds 40-45% of its budget from taxes, and so is quietly looting its citizens’ banking, pension and insurance assets for the shortfall. US citizens are more fortunate, because our dollar hegemony has meant that our government has largely been looting foreign bond purchasers and their customers instead.

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Interesting new research shows that THE key to disaster recovery is the strength of the local community ('social capital'), NOT Government action

June 12th, 2011 No comments

Daniel P. Aldrich is an up-and-coming political scientist who got interested in disaster recovery when New Orleans was hit by Hurricane Katrina a few months after he had moved there with his family.

He has also spent quite a bit of time living and studying in Japan; I ran across him recently in connection with my reading and blogging on post-earthquake, post-tsunami and post-Fukushima nuclear power plant disaster Japan; he’s mentioned prominently in the NYT article excerpted in my preceding post.

According to his bio at Purdue University, Aldrich:

received his Ph.D. and M.A. in political science from Harvard University, an M.A. from the University of California at Berkeley, and his B.A. from the University of North Carolina at Chapel Hill. Daniel has focused on the ways in which state agencies interact with contentious civil society over the siting of controversial facilities such as nuclear power plants, airports, and dams. His current research investigates how neighborhoods and communities recover from disasters. He has published a number of peer-reviewed articles along with research for general audiences. His research has been funded by grants from the Abe Foundation, IIE Fulbright Foundation, the National Science Foundation, the Reischauer Institute at Harvard University, the Weatherhead Center for International Affairs, and Harvard’s Center for European Studies. He has been a visiting scholar at the Japanese Ministry of Finance, the Institute for Social Science at Tokyo University, Harvard University, the Tata Institute for Social Science in Mumbai, the Institut d’etudes politiques de Paris (Sciences Po), and the East West Center in Honolulu, Hawaii. He has spent more than three years conducting fieldwork in Japan, India and France.

His research and writing on disasters and resilience is very interesting and speaks to the importance of strong communities of the type that governments and their corprate agents frequently do their best to seek to erode. Here is his own description and set of links to that work:

Externalities of Strong Social Capital: Post Tsunami Recovery in Southeast Asia forthcoming in Journal of Civil Society

 

Much research has implied that social capital functions as an unqualified “public good,” enhancing governance, economic performance, and quality of life (Coleman 1988; Cohen and Arato 1992; Putnam 1993; Cohen and Rogers 1995). Scholars of disaster (Nakagawa and Shaw 2004; Adger et al. 2005; Dynes 2005; Tatsuki 2008) have extended this concept to posit that social capital provides nonexcludable benefits to whole communities after major crises. Using qualitative methods to analyze data from villages in Tamil Nadu, India following the 2004 Indian Ocean tsunami, this paper demonstrates that high levels of social capital simultaneously provided strong benefits and equally strong negative externalities, especially to those already on the periphery of society. In these villages, high levels of social capital reduced barriers to collective action for members of the uur panchayats (hamlet councils) and parish councils, speeding up their recovery and connecting them to aid organizations, but at the same time reinforced obstacles to recovery for women, Dalits, migrants, and Muslims. These localized findings have important implications for academic studies of social capital and policy formation for future disasters and recovery schemes.

Social Science Perspectives on Disasters in Perspectives on Politics

In this extended review, I discuss three recent books on disaster: Governing after Crisis: The Politics of Investigation, Accountability, and Learning edited by Arjen Boin, Allan McConnell, and Paul ‘T Hart, Learning from Catastrophes: Strategies for Reaction and Response , edited by Howard Kunreuther and Micheel Useem, and The Next Catastrophe: Reducing Our Vulnerabilities to Natural, Industrial, and Terrorist Disasters by Charles Perrow. All three books invoke the market and state as core forces at work in mitigation and disaster recovery, overlooking the critical role of social capital.

Separate and Unequal: Post-Tsunami Aid Distribution in Southern India published in Social Science Quarterly

Objective. Disasters are a regular occurrence throughout the world. Whether all eligible victims of a catastrophe receive similar amounts of aid from governments and donors following a crisis remains an open question. Methods. I use data on 62 similarly damaged inland fishing villages in five districts of southeastern India following the 2004 Indian Ocean tsunami to measure the causal influence of caste, location, wealth, and bridging social capital on the receipt of aid. Using two-limit tobit and negative binomial models, I investigate the factors that influence the time spent in refugee camps, receipt of an initial aid packet, and receipt of 4,000 rupees. Results. Caste, family status, and wealth proved to be powerful predictors of beneficiaries and nonbeneficiaries during the aid process. Conclusion. While many scholars and practitioners envision aid distribution as primarily a technocratic process, this research shows that discrimination and financial resources strongly affect the flow of disaster aid.

The Power of People: Social Capital’s Role in Recovery from the 1995 Kobe Earthquake forthcoming in Natural Hazards

Despite the regularity of disasters, social science has only begun to generate replicable knowledge about the factors which facilitate post-crisis recovery. Building on the broad variation in recovery rates within disaster-affected cities, I investigate the ability of Kobe’s nine wards to repopulate after the 1995 Kobe earthquake in Japan. This article uses case studies of neighborhoods in Kobe alongside new time-series, cross-sectional data set to test five variables thought to influence recovery along with the relatively untested factor of social capital. Controlling for damage, population density, economic conditions, inequality and other variables thought important in past research, social capital proves to be the strongest and most robust predictor of population recovery after catastrophe. This has important implications both for public policies focused on reconstruction and for social science more generally.

Fixing Recovery: Social Capital in Post-Crisis Resilience in The Journal of Homeland Security June 2010

Disasters remain among the most critical events which impact residents and their neighborhoods; they have killed far more individuals than high salience issues such as terrorism. Unfortunately, disaster recovery programs run by the United States and foreign governments have not been updated to reflect a new understanding of the essential nature of social capital and networks. I call for a re-orientation of disaster preparedness and recovery programs at all levels away from the standard fixes focused on physical infrastructure towards ones targeting social infrastructure. The reservoirs of social capital and the trust (or lack thereof) between citizens in disaster-affected communities can help us understand why some neighborhoods in cities like Kobe, Japan, Tamil Nadu, India, and New Orleans, Louisiana displayed resilience while others stagnated. Social capital – the engine for recovery – can be deepened both through local initiatives and interventions from foreign agencies.

Aldrich Presentation on 25 March 2010 BUILDING RESILIENCE conference

Despite the clear and present danger from disasters, social scientists have yet to provide strong, quantitative evidence about which factors influence the pace of recovery. Using data from four megadisasters over the 20th and 21st century – the 1923 Tokyo earthquake, the 1995 Kobe earthquake, the 2004 Indian Ocean tsunami, and the 2005 Hurricane Katrina – Aldrich argues that social infrastructure is the critical factor in recovery.

The Crucial Role of Civil Society in Disaster Recovery and Japan’s Preparedness for Emergencies in Japan aktuell 3/28

This article is concerned with the empirical puzzle of why certain neighborhoods and localities recover more quickly than others following disasters. It illuminates four mainstream theories of rehabilitation and resilience, and then investigates a neglected factor, namely the role of social networks and civil society. Initial analyses underscore the important role of trust and connectivity among local residents in the process of rebuilding. After examining the role of civil society in Japan’s preparedness for emergencies, the article concludes with some policy recommendations for governments and nongovernmental actors involved in disaster relief.

This paper, entitled the The Need for Comparative Research, was prepared for a conference at the Jamsetji Tata Centre for Disaster Management in February 2008, and sets out some initial ideas which have motivated this project.

Some of Aldrich’s newspaper articles are linked here.

I expect I’ll be commenting further on his work.

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A guest post by investigative reporter & Three-Mile Island gadfly Bill Keisling on "The Fukushima Experiment"

April 7th, 2011 No comments

I’ve run across a very interesting post on problems with nuclear power and the “crony capitalist” nuclear power industry and government interface, by a veteran freelance Pennsylvania journalist/gadfly who started writing about ConEd’s Three-Mile Island facility well before it experienced its famous melt-down.

Bill Keisling is a dogged hunter of local corruption, a prolific author, blogger (at his website Yardbird.com) and videomaker (see, for example, his expose on how Pennsyvania college students were housed on a former Department if Defense nuclear watse sie).

Bill kindly gave me permission to cross-post his piece below, which I copy in its entirety.from his website, which I encourage readers to visit. I think his views provide very useful context.

  

 big wave at fukushima by mr. ok cola

The Fukushima Experiment

A nuclear meltdown survival guide

Japan’s Tepco utility executives and government officials are alternately accused of covering-up, withholding information, or downplaying the severity of their nuclear accident.

Truth is, as many of us nuclear meltdown veterans know, those utility executives and officials are as much in the dark as the rest of us.

If you live within two hundred miles of a nuclear power plant, consider this: If the plant suffers a meltdown, no one on earth will be able to tell you what to expect.

Welcome, then, to the Fukushima Experiment …

 

by Bill Keisling

 

Posted March 28, 2011 — The nuclear meltdowns at Japan’s Fukushima Daiichi atomic power plant reignited deeply personal memories for many of us in central Pennsylvania who lived through 1979’s Three Mile Island incident.

Some argue that the technological or natural causes of these two nuclear accidents differ greatly. Yet aspects of both are stunningly similar: both events caused world-wide hysteria and panic, followed by general condemnation of utility executives and government officials for their supposed mishandling or misunderstanding of the crisis.

 


The nuclear accident on Three Mile Island was a life-changing experience for me, and many others. In 1979 I was a young editor of a community magazine. I was actually the first writer/journalist to arrive at the gates of Three Mile Island the morning of the accident, on March 28, 1979. That morning I had both personal and professional reasons for being there.

The community newspaper I edited, Harrisburg Magazine, had, in the months leading up to the Three Mile Island accident, uncovered myriad problems at the nuclear power plant. We’d documented the willingness of state and federal regulators to look the other way so that the substandard and unsafe power plant could operate.

In August 1978 we even published a cover story detailing a possible disaster scenario involving these unresolved problems at the power plant titled, “Meltdown: Tomorrow’s Disaster at Three Mile Island.”

The owner of the power plant, Metropolitan Edison, was not amused. The electric utility responded by seeking a congressional investigation of our small magazine. Met-Ed almost ran us out of business.

Several months later, early on the morning of the accident, I got a call from a friend telling me that there was some sort of leak at the power plant and that a nuclear site emergency had been declared. I threw my camera and tape recorder into the car and drove the dozen or so miles to the gates of Three Mile Island.

There wasn’t much to see. To the naked eye, the two reactors and the four cooling towers sat placidly as ever on the island. From the gate nothing seemed particularly wrong, or out of place. A small amount of stream rose from two of the massive cooling towers.

The guards at the gate did their best to ignore me. I asked a guard what was going on but he brusquely refused to answer any questions. I pointed to a radiation monitor he wore on his jacket — a dosimeter — and asked what the instrument read.

“It doesn’t matter now,” he told me with a nervous break in his voice.

Shortly thereafter I was standing at the gate when scared nuclear workers began evacuating the plant. The guards hurriedly passed hand-held Geiger counters over each employee’s car, checking for radiation.

This, it turns out, wouldn’t be that much different from events at the gates of the Fukushima Daiichi nuclear power plant in March 2011. An American software engineer working at Fukushima witnessed terrified Japanese nuclear workers trying to escape by climbing over the nuclear plant’s fence following the earthquake.

As for myself, back in 1979, at the gates of Three Mile Island, my first impulse was to run. I later wrote about the moment in my novel, The Meltdown:

It made you think this wasn’t such a good place to hang out.

The main gate opened, the cars streamed out. They came one after another to the highway and turned right, wasting no time, tires spinning in the gravel. I heard one of the drivers say to another, ‘We’re all supposed to go to the substation down the road to be tested for contamination.’

Forty or fifty cars streamed from the plant, stopped momentarily to be swept by Geiger counters at the gate, then barreled up the road out of sight. All the while the cooling towers hung in the background.

Some sort of wild frightening premonition swept over me.

The idea came to me to put five hundred miles between me and this place. I turned and started back to my car. I only took two or three steps, then I stopped. Maybe I should call some friends, I thought. Let them know the reactor’s about to melt. It would be a kind, a thoughtful thing to do, a kindness I’d appreciate from a friend. But I wouldn’t be able to reach most of the people I knew.

At that moment I made a fateful decision that, for me, was life changing. I’d realized there was no place in the world to run from a nuclear accident. I couldn’t possibly warn all my friends and family. My life would be destroyed with the people and the town that I knew.

So sorry: American and Japanese utility executives employ different approaches to breaking bad nuclear news. Met-Ed’s Jack Herbein wagged his finger and told us to Talk to the Hand in 1979; Tepco execs offered deep bows (bottom). Herbein photo by Bill Keisling.


I turned to face the power plant, and planted my foot firmly in its path. I decided at that moment to understand what was happening, and to try to understand why it happened.

In the ensuing minutes, hours, and days, I saw it all, much of it first hand.

I followed the procession of cars evacuating the power plant gates to a nearby observation center. There I listened, watched, and interviewed scared workers. Things I saw that morning forever burn my memory.

One middle-aged nuclear worker sat nervously inside the touristy observation center waiting to be screened for radiation contamination. His hands shook violently and uncontrollably. He held his hands out in front of himself and watched them shake. He stared at his own shaking hands as if they were someone else’s hands, and not his own.

It was bedlam all around us at the observation center. Rad-suited crews swept the grounds for radiation leaks. One hyper worker knocked through the pandemonium gasping, “There’s been a mix up somewhere here!”

Helicopters carrying out-of-town newsmen and cameramen spun down from the sky. By the minute, before my eyes, it grew into an international incident.

Before long a helicopter carrying a utility executive landed on the lawn of the observation center. Jack Herbein, Met-Ed’s vice president for generation, convened an impromptu news conference on the back lawn.

Jack Herbein was normally a polished and controlled utility executive. That day he memorably told the television cameras that everything was “under control.”

“There’s nothing to worry about,” Herbein told us. “Just a little water spilt on the floor.”

We followed Herbein inside the observation center. I yelled over the din at him, inquiring whether this was a nuclear core meltdown.

Herbein looked straight at me, but didn’t answer. His eyes betrayed shock, and fright. He turned and hurried back to his helicopter and choppered away.

Within days, Met-Ed’s Jack Herbein would find himself at ground zero of an international uproar.

The accident just wouldn’t go away. Utility executives and government officials tried their best to play things down. Then, a few hours later, more wrenching bad news would leak from the power plant.

The reactor’s 150-plus tons of nuclear fuel might be melting. The governor ordered an evacuation of children and pregnant women. A potentially explosive hydrogen bubble was detected in the reactor. Things clearly weren’t “under control.”

TMI Jack Herbein by Bill Keisling

Met-Ed’s Jack Herbein stands on milk box to scold world press: ‘I don’t know why we need to tell you every little thing that we do!’ Tepco execs in 2011 offer still more apologetic deep bows to evacuees. Jack Herbein photo by Bill Keisling. Click photo or here to enlarge.


Four days after the initial accident on Three Mile Island, on Saturday, March 31, 1979, at a press conference in nearby Middletown, wearing the same rumpled suit he’d been in for days, an exhausted Jack Herbein of Med-Ed stood on a milk carton to boost himself above a mountain of microphones to bray at the immense polyglot mob of the world’s news media, “I don’t know why we need to tell you each and every little thing that we do!”

That one moment of frustrated pique cost Met-Ed, and Jack Herbein, all public sympathy.

But was Jack Herbein covering up, or was he simply as much in the dark as the rest of us?

 

More than three decades later it’s deja vu all over again, but this time fighting the dark are executives with the Tokyo Electric Power Co., operators of Japan’s runaway nuclear reactors at the Fukushima Daiichi nuclear power plant.

Tepco utility executives are alternately accused of covering-up, withholding information, or downplaying the severity of their nuclear accident.

Truth is, as many of us nuclear accident veterans know, those utility executives are as much in the dark as the rest of us.

Lessons from Three Mile Island in 1979 go a long way to explain what’s happening in 2011 in Japan.

In the years following the Three Mile Island accident much was learned about what the utility did, and did not know at the time of the 1979 reactor meltdown in Pennsylvania.

It became painfully obvious that the control room operators, the utility executives, and the government overseers of Three Mile Island simply did not know at the time what was happening inside their damaged nuclear reactor core.

Why they did not know is really the heart of the matter, and the thing we should consider.

In the event of a runaway nuclear reactor (politely called a “power excursion” by the industry), Tepco executives in Japan, like their counterparts in Pennsylvania, don’t have the foggiest idea what may happen when their reactors melt.

If you live within two hundred miles of a nuclear power plant, consider this: If the plant suffers a meltdown, no one on earth will be able to tell you what to expect.

Having spent decades looking into all this, I thought I might save those interested in researching the Fukushima nuclear disaster valuable time and trouble by providing a short list of the most important points I’ve learned about nuclear power accidents.

Decades of research can be boiled down to a few key observations or rules that until now I’ve kept in the back of my head.

I here offer my list as a time-saving primer to others:

Rule 1:

Commercial atomic energy technology is a pseudo-science and is not based on proper scientific experimentation.

As we recently witnessed during the multiple nuclear accidents at the Fukushima nuclear power plant, a damaged reactor (or reactors) often has broken controls, computers systems, and gauges that make monitoring a runaway nuclear reaction difficult, if not impossible.

Confusion and fright in the control room(s) at the time of emergency create what can almost be called A Fog of War. Indeed, war it is. They’re at war with a runaway nuclear reactor.

At Fukushima, as on Three Mile Island, operators wished they could simply peer into the containment building with their own eyes and dispense with the broken alarms, computers and gauges that tell them nothing, and often mislead them.


‘The nuclear power industry naturally doesn’t think very much of troublesome nitwits like Galileo, Francis Bacon, René Descartes, Isaac Newton, and their ridiculous, old-fashioned ideas about experimentation, reproducible results, and scientific method.’


But that’s only a small part of the problem. Truth is, no one really understands the behavior of tons of melted nuclear fuel in a reactor.

For a variety of reasons, the commercial nuclear power industry and its government regulators never conducted a single experimental meltdown of a full-size nuclear reactor.

So, until one melts, no one knows how a runaway reactor will behave.

As most of us remember from high school, scientific knowledge has advanced over the centuries because of what’s called the Scientific Method.

The Oxford English Dictionary defines the Scientific Method as “a method of procedure that has characterized natural science since the 17th century, consisting in systematic observation, measurement, and experiment, and the formulation, testing, and modification of hypotheses.”

In simple words, real-world experiments must be designed to test a hypothesis, and results must be reproducible.

As we know, cars and planes are rigorously tested and crashed all the time, in all manner of ways, in all sorts of conditions. That’s how designers and regulators learn how these complicated machines behave in real-world accidents, and whether they’re safe.

Not so nuclear reactors. For a variety of reasons, including half a century of financial and political considerations, regulators in the United States side-stepped or outright ignored the issue of full-scale reactor safety testing, and continue to ignore it to this day.

This inescapable and troubling fact is entwined with the history of atomic power regulation in the United States. In brief, here’s the story, with footnotes and references for those who want to follow along at home:

After the war with Japan ended in 1945 with the dropping of atomic bombs in Hiroshima and Nagasaki, the US found itself the world’s sole possessor of the secrets of atomic energy.

To take these secrets from the hands of the military and deliver them to the civilian population, the United States Congress passed the Atomic Energy Act of 1946. This legislation forbade any entity but the US Government from creating atomic energy, and disallowed international cooperation involving any atomic secrets. To oversee the peacetime atom, the Atomic Energy Commission (AEC) was created, and Harry Truman appointed five commissioners. A statute of Congress created the Joint Committee on Atomic Energy on August 2, 1946. This joint committee would police the AEC, and authorize all appropriations to the commission. 1

The EBR-I experimental reactor in Idaho was the scene of both the first atomic generation of electric power and an early reactor meltdown.


History was made almost five years later. Four, 200-watt light bulbs began to glow when 12 control rods were lifted away at the Experimental Breeder Reactor Number One (EBR-I) in Idaho Falls, Idaho. Sixteen technicians signed their names on a wall there, beneath this notation: “Electricity Was First Generated Here From Atomic Energy on December 20, 1951.” EBR-I seemed all the more remarkable because it was a breeder reactor and, it was said, could safely produce more fuel than it burned. 2

Mamie Eisenhower christened the Nautilus, the world’s first nuclear powered submarine, on January 21, 1954. The public loved it. Still, many Americans were anxious to give private industry an opportunity to split atoms. The Atomic Energy Commission was seen as an island of socialism in the sea of free enterprise.

Dwight Eisenhower signed the Atomic Energy Act of 1954 on August 30 of that year. The “Atoms for Peace” program was launched. Private enterprise could now exploit nuclear power, the AEC would begin to award contracts to businesses, and the poor nations of the world were promised atomic power. 3

The bubble burst in November of 1955. The tiny EBR-I reactor had been experiencing power fluctuations and, while trying to discover the cause of the problem, technicians attempted to bring the core to within a few degrees of melting temperature. At half power, fuel rods holding the Uranium-235 fuel began to bow inward, increasing the core’s reactivity. A “power excursion” occurred, and the reactor began to run away, its gauges climbing off scale. With a split second to spare, a technician commanded a “blanket” of U-238 bricks surrounding the fuel rods to drop away, stopping the power excursion.

An explosion was barely avoided, but the core, capable of producing 1.4 megawatts of heat output, had melted. 4


‘Lloyds of London would not write a policy protecting a nuclear power plant’


Insurance companies, which had been trying to assess the feasibility of insuring commercial reactors, were more squeamish than ever. Utilities considering building nuclear power stations discovered their investments could not be insured. Lloyds of London, known for taking risks on just about anything, would not write a policy protecting a nuclear power plant. Insurance companies throughout America began writing nuclear exclusion clauses into homeowners’ policies, preventing insurance payments for any nuclear related loss. The entire insurance industry pooled together would provide no more than $65 million worth of coverage for a nuclear power plant. 5

Hoping to win the insurance industry’s confidence, the Joint Committee on Atomic Energy authorized the AEC and the Brookhaven National Laboratory to prepare a study on the effects of a major accident at a 100- to 200-megawatt electrical output reactor.

In March 1957, the study, entitled “Theoretical Possibilities and Consequences of Major Accidents in Large Nuclear Power Plants,” Or WASH-740, was released. WASH-740 did not make the insurers rest easier. The Brookhaven laboratory estimated that in the event of a worst possible accident, 3,400 people would die, 43,000 would be injured and seven billion dollars worth of damage would be done. Commercial nuclear power production was now at a standstill. 6

Because the private insurance wasn’t enough, the utilities now settled for a bit of socialism. Senator Clinton Anderson and Congressman Melvin Price introduced legislation that provided for $495 million worth of government coverage — an arbitrarily arrived at amount — in addition to the $65 million private insurance pool. The Price-Anderson Amendment to the 1954 Atomic Energy Act became law in September 1957. The last hurdle apparently out of the way, private industry was, again, off and running to create fission energy. 7

In Pennsylvania, Metropolitan Edison and its fellow utilities of the General Public Utilities Corporation, along with the Pennsylvania State University and Rutgers University, created the Saxton Nuclear Experimental Corporation. The AEC approved a construction permit for a 20-megawatt thermally rated reactor in Saxton, Pennsylvania, in 1959. 8

The SL-1 experimental reactor being lifted from its containment building following its deadly 1961 accident.


But tragedy visited another experimental reactor on January 3, 1961. At about nine in the evening, three technicians were performing a maintenance operation on the SL-1 reactor in Idaho Falls, Idaho. The SL-1 was one of 17 test reactors scattered across 892 square miles of Idaho desert at the AEC’s National Reactor Testing Station. The tiny SL-1 was meant to produce electricity for about a dozen homes in arctic military bases. For some time the reactor’s nine control rods had been acting up, as had other reactor functions.

The SL-1 had been shutdown for about a week in expectation of major repair work, its control rods pushed firmly down and disconnected from the mechanical control rod drive. The number nine control rod was the most important. It was the only rod that could start the chain reaction when lifted away. To ensure that the cadmium control rods would not stick or jam, technicians had been “exercising” them, lifting them a few inches, then returning them. That night three technicians were standing on top of the reactor, reconnecting the control rods to the mechanical drive. The number nine control rod had to be lifted four inches by hand to be connected to the machinery.

During this operation the rod was lifted too far. In a fraction of a second the reactor became critical, a power excursion followed, and an estimated 1,500,000,000,000,000,000 atoms split.

By the time help arrived, one man was found dead. A second technician was rushed outside, but was so radiated that he had to be examined by a doctor wearing protective clothing. The second man quickly died. The third technician was found dead on the ceiling of the reactor building. A piece of control rod was jammed through his groin, pinning his corpse to the ceiling at the shoulder.

For twenty days, the bodies were packed in water, alcohol and ice, while scientists tried to cleanse the dead tissues of uranium. Finally the men were buried, but their heads and hands had to be removed and buried with other nuclear wastes. 9


‘A third technician was found on the ceiling of the reactor building. A piece of control rod was jammed through his groin, pinning his corpse to the ceiling at the shoulder.’


The Atomic Energy Commission reached another crossroad in 1964, when construction permits for the first big, pressurized and boiling water reactors were granted. A utility could make an appreciable profit on its investment when smaller reactor designs were made larger, taking advantage of economies of scale. Pressurized water reactors rated at thousands of megawatts of heat output would soon be operating.

To estimate the damage of a serious accident at a large commercial reactor, the Joint Committee on Atomic Energy authorized the AEC and the Brookhaven laboratory to update the 1957 WASH-740. The results were shocking.

Instead of 3,400 deaths, there would be 27,000; instead of 43,000 injuries, there would be 73,000; instead of $7 billion worth of damage, a “worst possible accident” at a new pressurized or boiling water reactor would cause $17 billion in damages. To make matters much worse, Brookhaven statisticians determined that an evacuation would make no appreciable difference in the number of people killed.

The study indicated that a landmass the size of the Commonwealth of Pennsylvania could be rendered uninhabitable; that is, if the reactor were to be built, say, in central Pennsylvania.

Fearing this updated WASH-740 report would create an outcry at a very sensitive time, the AEC withheld this report from the public. 10

A draft of the updated WASH-740 report would not be released until June 1973, after both the Three Mile Island and Fukushima nuclear power plants were designed, considered for licensing, or built.

About the same time the WASH-740 update was being prepared, an “internal report” of the National Reactor Testing Station was also being drafted. This report called for a six-year minimum, intensive testing program to be conducted with the large reactors.

The NRTS report recommended that full-scale destructive testing be included in these reactor tests. The 1964-65 report was not released to the public until 1974; its findings too were ignored by the AEC.

The BORAX-1 experimental reactor seen undergoing a power excursion. When it finally blew up, scientists pointed out ‘uncertainties of extrapolation.’


Power excursion testing previously had been conducted inside tiny reactors. The BORAX-1 test reactor was only 1/500th the size of the larger, commercial reactors approved after 1964. By pulling the control rods of the BORAX-1, power excursions were created, and water was vigorously expelled from the coolant system, causing the reactor to shut down. But when an excursion test designed to melt the core was conducted in 1954, a “somewhat unexpected” steam explosion occurred, destroying the reactor and tossing a one-ton piece of equipment 30 feet into the air. 11

The Argonne National Laboratory reports that BORAX-1 “was deliberately destroyed in July 1954. Fuel plate fragments were scattered for a distance of 200-300 feet… The final test revealed that the predictions of total energy and fuel plate temperatures had been considerably too low. Instead of the melting of a few fuel plates, the test melted a major fraction of the entire core. The discrepancy was attributed to the uncertainties of extrapolation. The results of this energy liberation in the way of peak pressures and explosive violence lie in a region where there had been no previous experimental data.”

In other words, you can’t predict how a big reactor may behave from experiments conducted with much less fuel in a smaller reactor.


‘The National Reactor Testing Station report recommended that full-scale destructive testing be included in reactor tests.

The 1964-65 report was not released to the public until 1974; its findings were ignored by the AEC.’


Additional power excursion tests were conducted in the early 1960s on the Special Power Excursion Reactor Test, or SPERT-1 test reactor. In his book Nuclear Power: Both Sides, physicist Michio Kaku writes, “In some of the experiments we ran on the SPERT reactor we deliberately withdrew the control rods rapidly from the core. Without the control rods to absorb and regulate the neutrons from the fission process, the chain reaction would spin quickly out of control, and power levels would rise from zero to 30,000 megawatts (30 billion watts) in less than one-hundreth of a second. The cooling water would boil furiously, causing a steam explosion. On one occasion in 1962 I had the dubious distinction of deliberately blowing up the SPERT-1 reactor.” 12

The AEC officially reported that the SPERT-1’s core failed to explode during the “severest test that could be performed,” but the AEC did not mention that the SPERT-1 had faulty fuel rods, which terminated the power excursion by expelling fuel powder and coolant. No SPERT-1 power excursion test was then conducted with corrected fuel rods.

Both the BORAX-1 and the SPERT-1 test reactors, moreover, had several design differences from the larger, commercial reactors. When test reactors were built with a similar design to the larger reactors, power excursion experiments that could damage the fuel were deliberately avoided.

Instead, the AEC relied on calculations. “Design basis accidents,” and “worse possible accidents” were computed, but never verified by proper, scientific experimentation.

The AEC assumed sophisticated, though unverified, reactor theory to be fact. One reason for relying on these unproven calculations was that it was much less expensive over the short-run to do so than destroying a commercial size reactor, which could cost hundreds of million dollars, if not more.

Another reason for this unorthodox “un-scientific method” was that power excursion testing with reactors containing 100 tons or more of uranium could have serious environmental consequences.

So the nuclear industry continued to bank on the unproven hypothesis that a large, commercial reactor could be operated with little or no danger of explosion. 13

This deliberate blunder was one of the great scientific errors of twentieth century technology.

In contrast, Albert Einstein’s theories of relativity, the foundation of modern atomic science, continue to be subjected to painstaking experimentation. 14

Still, a good bit of the scientific laziness, lack of curiosity, and outright intellectual dishonesty of the nuclear regulators simply was a ruse to protect the finances of the nuclear industry.

As we see, the illusion of reactor safety and nuclear finances go hand-in-hand. Real-world experimental data which undermines the perceived safety of nuclear power plants is a threat to the insurability, and thus the financial viability, of the power plants. So over the decades real-world experiments that would impeach the safety of nuclear plants simply were never performed, were suppressed, or were played down by nuclear regulators.

Some blamed the problem on the mission and culture of the Atomic Energy Commission to both regulate and promote atomic energy.

Supposedly addressing this problem, Congress passed the Energy Reorganization Act of 1974, which abolished the Atomic Energy Commission. The AEC was replaced by the Nuclear Regulatory Commission (NRC), and the Energy Research and Development Administration (ERDA). The NRC now would supposedly only regulate, while ERDA would promote nuclear energy, especially reactor development.

Yet, in the decades ahead, the NRC would continue to avoid full-scale experimental reactor meltdown tests in favor of costly computer models, fantasy reports, and ivory tower academic studies. There would be Bull Shit, More bull Shit, and bullshit Piled Higher and Deeper (in scientific and academic parlance, BS, MS, and PhD).

Nuclear reactor safety study became a colossal thought experiment. Reactor safely would exist only in the minds of their creators, and not in the real world, supported by reliable, controlled and reproducible scientific data.

Heaven and earth: Inside Fukushima’s Unit 2 control room in late March 2011, where events dismissed by the nuclear industry as ‘highly unlikely’ are an every day real-world nightmare for struggling operators and citizens.


Over the decades (and to this day) the NRC and the nuclear industry continued to cook up their own imaginary projections, involving narrowly defined “likely scenarios” and “analyses” devised by industry cheerleaders wearing tin-foil hats. These fairy tales are then supposedly bolstered with equally imaginary computer models.

In the 1970s, the NRC commissioned, for example, the infamous Rasmussen Report, or WASH-1400, as a follow-up to the discredited and suppressed WASH-740 reports.

The Rasmussen Report, also called “The Reactor Safety Study,” was soon also widely discredited within the scientific community. A subsequent review by the NRC conducted by Professor Harold Lewis of the University of California concluded that, “the uncertainties in WASH-1400’s estimates of the probabilities of severe accidents were in general, greatly understated.”

This led to other imaginary and sugar-coated Candyland reactor safety “studies,” including 1982’s CRAC-II, and 1991’s NUREG-1150.

“CRAC-II is both a computer code (titled Calculation of Reactor Accident Consequences) and the 1982 report of the simulation results performed by Sandia National Laboratories for the Nuclear Regulatory Commission. The report is sometimes referred to as the CRAC-II report because it is the computer program used in the calculations,” Wikipedia relates.

“The CRAC-II simulations calculated the possible consequences of a worst-case accident under worst-case conditions (a so-called “class-9 accident”) for a number of different U.S. nuclear power plants. In the Sandia Siting Study, the Indian Point (NY) Energy Center was calculated to have the largest possible consequences for an SST1 (spectrum of source terms) release, with estimated maximum possible casualty numbers of around 50,000 deaths, 150,000 injuries, and property damage of $274 Billion to $314 Billion (based on figures at the time of the report in 1982)…. CRAC-II has been declared to be obsolete and will be replaced by the State-of-the-Art Reactor Consequence Analyses study.”

The NRC itself would later discredit and issue a disclaimer of both the CRAC and NUREG “studies.” The NRC disclaimer of CRAC-II and NUREG-1150 reads as follows:

‘The U.S. Nuclear Regulatory Commission has devoted considerable research resources, both in the past and currently, to evaluating accidents and the possible public consequences of severe reactor accidents. The NRC’s most recent studies have confirmed that early research into the topic led to extremely conservative consequence analyses that generate invalid results for attempting to quantify the possible effects of very unlikely severe accidents. In particular, these previous studies did not reflect current plant design, operation, accident management strategies or security enhancements. They often used unnecessarily conservative estimates or assumptions concerning possible damage to the reactor core, the possible radioactive contamination that could be released, and possible failures of the reactor vessel and containment buildings. These previous studies also failed to realistically model the effect of emergency preparedness. The NRC staff is currently pursuing a new, state-of-the-art assessment of possible severe accidents and their consequences.”

In other words, after spending tens of millions of dollars in wasted resources to produce sham results, the NRC bureaucracy naturally resolved to spend tens of millions of more dollars to produce even more imaginary and far-fetched sham results. How reliable are these computer models?

In a timely article in the March 28, 2011 New York Times, John H. Broder, Matthew Walk and Tom Zeller point out, “American nuclear safety regulators, using a complex mathematical technique, determined that the simultaneous failure of both emergency shutdown systems to prevent a core meltdown was so unlikely that it would happen once every 17,000 years. It happened twice in four days at a pair of nuclear reactors in southern New Jersey.”

One imagines such a computer model in 2005 also setting the odds as “slim to none” of a black politician with a middle name of “Hussein” being elected president of the United States. The point is, the history of the world is filled with long shots with slim chances of overturning established norms. That in fact is what history is all about.

The NRC’s ‘State-Of-The-Art Reactor Consequence Analyses,’ or SOARCA, doesn’t even consider the consequences of accidents involving spent nuclear fuel pools, like those presumed to be now burning in Fukushima.


As mentioned, the NRC’s current search for a “state-of-the-art” study is called, appropriately enough, “State-Of-The-Art Reactor Consequence Analyses,” or SOARCA. (Not to be confused, gentle reader, with SCROTUM, which, in nuclear parlance, refers to the biological equipment by which operators are held by runaway reactors.)

NRC’s SOARCA website proclaims, “The project uses computer models and simulation tools to conduct in-depth analysis of two operating nuclear power plants, a boiling-water reactor and a pressurized-water reactor,” the types found in Fukushima and on Three Mile Island, respectively.

The SOARCA study further claims to consider “the highly unlikely event of a severe reactor accident.”

But, as Hamlet tells Horatio, “There are more things in heaven and earth than are dreamt of in your philosophy.”

SOARCA, it should go without saying, does not contemplate actual severe, real-world environmental catastrophes like the 9.0 earthquake and tsunami which unexpectedly destroyed multiple reactors and spent fuel pools at Fukushima, or myriad other events which the NRC considers “highly unlikely.”

The NRC’s SOARCA website further explains that the study does not take into account such events as “terrorist acts.” Nor, it goes without saying, does SOARCA consider what happens in the event of war, when one or more of the world’s 400-plus atomic reactors is damaged by combatants, leaving undisciplined Third World operators struggling to control a runaway reactor(s) and spent fuel pools.

Moreover, the SOARCA “study” doesn’t even consider the consequences of accidents involving spent nuclear fuel rod pools, like those now burning in Fukushima.

The NRC’s SOARCA FAQ page states:

Are accidents at spent fuel pools considered in this study?

No. The project focuses on evaluating the very unlikely severe accident scenarios that may occur at operating power reactors and, as such, it does not consider spent fuel pools.

Of course, on the real planet earth, and not the fantasy Game Boy simulations of the nuclear industry, if you are unlucky enough to work as a nuclear control room operator when a fire breaks out in one or more spent fuel pools, as it did in Fukushima, spewing highly radioactive smoke and throwing explosive debris several hundred feet into the air, thus preventing you from controlling your already damaged nuclear reactor(s), you’ve got a problem on your hands not considered by SOARCA. Then again, in the “highly unlikely” event that your reactor(s) blow up, spewing highly radioactive steam and throwing explosive debris several hundred feet into the air, thus preventing you from putting out a fire in your spent fuel pool(s), you’ve got an altogether different “highly unlikely” event(s) on your hands, Pilgrim.

What, me worry? NRC inspectors reported that ‘At times during various shifts, in particular the 11:00 pm to 7:00 am shift, one or more of the Peach Bottom (Pennsylvania) operations control room staff (including licensed operators, senior licensed operators and shift supervision) have for at least the past few months periodically slept or have been otherwise inattentive to licensed duties.’


That’s when, as we see in Fukushima, your SCROTUM is in serious danger, and, like those eminently professional and enlightened nuclear workers seen scaling the fence to escape Fukushima, you better, in nuclear terminology, SCRAM the reactor(s).

If, however, you cannot SCRAM fast enough, you should then consider the time-honored emergency inventory and communications procedure known in nuclear circles as KYSAG, or Kiss Your Sweet Ass Goodbye.

(I realize these terms are complicated and technical to the lay reader, but obtuse technical jargon is important to the nuclear industry.)

Or, if you’d prefer, like the supremely calm, collected, and laid-back control room operators at various American nuclear power plants, you can avoid much of the unnecessary stress of these “highly unlikely” events by simply going to sleep in the control room every night.

One man’s nuclear nightmare, after all, is just another man’s sweet dream, baby.

Which brings us to the next rule.

Rule 2:

Commercial atomic energy is based on voodoo economics.

With the vexing realities of nuclear industry finances, insurance, and what to do with thousands of tons of highly radioactive spent fuel rods, atomic reactor pseudo-science merrily intersects with the voodoo economics of the nuclear industry.

Because spent nuclear fuel must be safety stored for tens of thousands of years, no one can agree where to put it, or how to pay for the storage, and so the spent reactor fuel piles up at nuclear power plants in the U.S. and around the world.

The NRC and the nuclear industry wisely choose to simply ignore this nettlesome problem. Hey, if you can’t solve it, why talk about it?

 

Call it “highly unlikely,” and move on.

Also in the category of nuclear voodoo economics are the shrewd nuclear industry investors who wisely refuse to themselves finance or insure new nuke plants, and instead insist that taxpayers pick up the tab. President Barack Obama, in fact, has promised the nuclear industry $36 billion for this very purpose in 2011.

These nuclear industry subsidies have been harshly criticized for decades. The bottom line is this: if it came down to risking their own money, nuclear investors would have nothing to do with nuclear reactor technology.

At Three Mile Island Unit One’s licensing hearing way back in November 7, 1973, for instance, Pennsylvania Insurance Commissioner Herbert Denenberg testified about the $560 million ceiling on insurance payments as mandated by the Price-Anderson Act.

“The plant owners will undoubtedly deny that this capping of benefits and liability represents any real material value to them, or conversely, any real cost to the public,” he said.

“They will point proudly to the fact that no member of the public — as opposed to workers in or associated with the activity of the industry — has been killed, and no catastrophic accidents have occurred, in 17 years of experience with nuclear reactors.

“And they will assert that on the basis of this safety record and their continuing zeal to make reactors uncommonly safe, the public would be foolish to worry about the financial consequences of an accident costing more than $560 million or, for that matter, any major accident at all.


‘If pressed, they will admit that a catastrophic accident is both conceivable and possible.

It will be the general public who must bear the cost.’


“All these arguments by the utilities are irrelevant, of course. The utilities do not take their own assurances about safety seriously enough to place their corporate necks on the line by renouncing their exemption from liability for a catastrophic accident, and in fact, they insist on the continuance of this exemption as a condition of their operating nuclear plants.

“If pressed, they will admit that a catastrophic accident is both conceivable and possible. And if such an accident occurs, the fact is that it will be the general public — and not the utilities and the reactor manufacturers — who must bear the cost.”

So let’s all learn a valuable lesson from the shrewd nuclear investor, and let’s be realistic here: endangering millions of lives; permanently polluting hundreds of square miles with uranium fission by-products; squandering billions of dollars of good money after bad: honestly, what else is government for?

These shrewd investors know that the true life-cycle costs of nuclear plants make them economically unviable.

Which brings us to Rule 3.

Rule 3:         

Be thankful the nuclear power industry is doing its level best to destroy the nuclear power industry. These guys are pros at it.

If nuclear industry executives are not scientists, and if they are not economists, what exactly are they?

Would I lie to you, sugar?


They are public relations and lobbying professionals, bullshit artists and bologna merchants, and, thankfully, highly incompetent ones at that.

Rest assured, the nuclear power industry is doing its level best to destroy the commercial nuclear power industry, and nobody does this better than they do.

Over the decades, the nuclear power industry has built a proven track record for ceaselessly working to destroy itself, without the help of a single anti-nuclear activist.

Rule 4:        

You are the experiment: In the event of a nuclear meltdown, use the opportunity to point out that this catastrophe once again proves the inherent safety of atomic energy.

As I’ve previously noted, the nuclear power industry naturally doesn’t think very much of troublesome nitwits like Galileo, Francis Bacon, René Descartes, Isaac Newton, and their ridiculous, old-fashioned ideas about experimentation, reproducible results, and scientific method.

Which is not to say that scientific data from real-world, full-scale nuclear meltdowns are not being collected.

Mountains of data — some useful, much of it not — have been, and will continue to be, amassed from the nuclear accidents at Three Mile Island, Chernobyl and, now, Fukushima.

The Three Mile Island Experiment: graphic of Unit 2 reactor core damage.


Some five years after the meltdown on Three Mile Island, the damaged Unit 2 reactor was finally cool and clean enough to be popped open, like a festive foie gras in a dead Christmas goose.

Giddy industry representatives got to peer inside, like kids who can’t wait for Christmas, and who wonder what Santa brought.

Much to the surprise and delight of the nuclear industry, half the 150-ton core at Three Mile Island was found to have melted before solidifying into radioactive rubble at the bottom the reactor vessel.

And you probably thought that 150 tons of 5,000 degree F. molten uranium might melt through the stainless steel reactor vessel, burn through the concrete floor of the containment building, and give someone a hot foot on the other side of the planet, didn’t you? (This does however beg the question of whether, in China, the uninformed talk about The Pittsburgh Syndrome.)

The well-paid nuclear industry spin doctors wasted no time, of course, pointing out that this embarrassing melted pile of rubble inside TMI’s Unit 2 reactor was “proof” that nuclear plants are safe.

The scientific problem with using data from these real-world accidents — aside from the ethical problem of using uninformed humans in their homes as guinea pigs — is that these “results” are irreproducible, and therefore unscientific.

We’ll never know, for example, precisely how much coolant water was dumped on the damaged Fukushima reactors and spent fuel pools, and in what controlled circumstances, before and after the terrified reactor operators ran for their lives, and tried to jump over the fence, and so on.

In other words, more bad science.

Perhaps we can one day prove conclusively that large, commercial nuclear reactors will not melt down, but merely fizzle and pop for an extended period of time, as did Unit Two on Three Mile Island. Nevertheless, this is not the sort of knowledge we should acquire from experiments conducted with innocent victims in their backyards.

Speaking of ignorant fools, we now come to Rule 5.

Rule 5:

They’re building a better model fool every year.

The ancient Greeks had a single word for all this. It’s a word for what they believed was the greatest of all human follies: hubris.

Hubris, as we use the word today, implies mere arrogance or pride. But to ancient Greeks, hubris was a legal term and, some say, the greatest single crime one could commit in the ancient Greek world, not unlike our own treason or, in religious societies, blasphemy.

In Greek tragedy, a protagonist who acted with hubris foolishly ignored human limitations and challenged the gods and their rules, inviting ruin and retribution at the hands of vengeful gods like Nemesis.

Agamemnon, for one example, was tempted by ruin with the suggestion that he walk on a divine tapestry.

In other words, as the ancients and Charlie Murphy warn us, keep your dirty feet off God’s white leather sofa, unless you want to get your ass kicked.

That it’s sinkable is unthinkable: Like the White Star Line’s Titanic, the Zeppelin company’s promotions prominently boasted that no passenger had ever been injured on one of their airships.


The oceans and junk yards of the world are littered with Titanics, Hindenburgs, Unit 2 reactors, and the scrap of other infallible machines that their creators boasted could not sink, melt, fall from the sky, or otherwise fail.

To get around this historical fact, nuclear engineers are fond of saying that their machines, in fact, are perfect: it’s the human element, the foolish human operator, they’ll tell you, that’s at fault.

The nuclear industry today boasts that it can, in fact, without any proper scientific experimentation at all, produce a fool-proof machine!

Trouble is, those fools are so damned crafty.

And, as one nuclear regulator worrisomely intimated to me recently, “They’re building a better model fool every year.”

Whether the nuclear industry can successfully build a better fool-proof machine to keep up with this year’s better model fool is any fool’s guess.

Fools have been around a long time, and I’m betting on the fool. Hell, in the United States of America fools control not just one, but two political parties, both houses of Congress, and the judiciary.

So let’s be brutally realistic here. You can’t underestimate the fool.

Even the smart money’s betting on the fool. Why do you think nuclear investors don’t want to risk their own damn money? They’re not fools.

I defer to that celebrated nuclear combat veteran, philosopher, action figure, and low-fat hamburger grill marketer, Mr. T:

I pity the fool.

But it would be foolish of us to blame everything on the fool in the nuclear control room.

Contrary to nuclear industry spin, foolish control room operators were not at fault for the Three Mile Island meltdown. Foolish regulators cooperated with foolish utility executives to operate a foolishly complex, leaking nuclear reactor with faulty components and miscalibrated controls that badly confused the already foolish control room operators.

Which brings us to Rule 6.

Rule 6:

People don’t like or understand atomic energy:
E=MC2 is not a recipe for comfort food

More than 30 years later, my thoughts keep returning to the nuclear worker from Three Mile Island whose hands I watched shake uncontrollably on the morning of the meltdown.

Make no mistake, those control operators were scared. But the nuclear worker I watched that day wasn’t scared for the future of the atomic power industry, his job, or even for his life, as far as I could see.

He trembled with the instinctive fear of having encountered an unknown monster, in an unknown country. His was the fear of the Lilliputian running for his life when Gulliver finally wakes up.

D’oh! Fear of over-sized unknown monsters is the oldest story of the western world. It’s Homer, not just Homer Simpson.


It’s Ray Harryhausen’s 7th Voyage of Sinbad meeting the Cyclops. It’s the oldest story of the western world: The Iliad and The Odyssey. It’s Homer, not just Homer Simpson.

These operators were scared, as people always are, by the unknown, and the unpredictability of the unknown they don’t control.

E=mc2, contrary to popular belief, is not a free lunch. It’s a conversion formula, describing the equivalence of energy to mass, and the resulting enormous energies released from the interaction of very small, invisible particles. Enormous also, in commensurate scale, are the consequences, and our responsibilities.

It’s hard for human beings to grasp Einstein’s dreadful formula on any human scale.

Some nuclear industry proponents foolishly compare atomic energy to garden variety chemical reactions, like fire.

But we humans evolved with fire. The taming and handling of fire, it’s believed, helped to make us human. The use of fire, we’re told, began long ago with our evolutionary ancestors, before we humans even emerged as a species.

Writing in Science magazine in 2009, Professor David Bowman and his collaborators tell us, “The spread of highly flammable savannas, where hominids originated, likely contributed to their eventual mastery of fire. The hominid fossil record suggests that cooked food may have appeared as early as 1.9 (million years ago), although reliable evidence for controlled fire use does not appear in the archaeological record until after 400,000 years ago.”

Think about it. Our use and understanding of fire sets us apart from every other animal on the planet. Every other species on earth naturally fears fire. In a forest fire, animals instinctively run or burrow for their lives. We, on the other hand, jump into forest fires from airplanes.

Imagine the horrible cries of our hairy ape ancestors swinging in the trees when the first one of us picked up a burning stick, and felt its warmth, and watched it burn, and brought it home.

Of course, some of our ancestors burned themselves to a crisp playing with fire, as we still do. As the authors of the above paper caution, “the evolution of adaptations to fire remains a difficult topic to explore because traits that increase the rate of occurrence of fire, or of recovery following burning, are not unambiguously the result of natural selection.”

In other words, I suppose, burning yourself and your home to a crisp may decrease your chance of finding a soul mate.

Still, even to this day, what more could one want for one’s man cave than fire, flame-broiled meat, fire-brewed beer, and a fiery, large-screen tv?

Can the same ever be comfortably said for nuclear fission? Will splitting atoms ever match the gentlemanly art of grilling meat or shooting defenseless animals with a fire stick? I sincerely doubt it.

That’s not to say that some of us haven’t tried to jump the evolutionary gulf by constructing our very own backyard nuclear reactor.

Columbus of the Atom: Dave Hahn, The Radioactive Boy Scout, in police mugshot.


Lest we forget that modern day Columbus of the Atom, Dave Hahn, of suburban Detroit, Michigan, better known as the Radioactive Boy Scout. In the late 1980s Mr. Hahn famously sought an Eagle Scout Badge by building an atomic breeder reactor from tin foil and salvaged radium paint in his mom’s backyard garden shed.

Mr. Hahn’s misadventure reads like the American nuclear industry’s answer to Chairman Mao’s Great Leap Forward.

Mr. Hahn, posing as a high school science teacher, phoned up the nuclear industry and the NRC, who were only to glad and happy to offer him invaluable advice on achieving an atomic chain reaction in his own backyard. (Refer again to Rule 5: A better model fool, and Rule 3: The nuclear industry needs no help taking care of its own fools.)

Mr. Hahn’s homemade backyard nuclear reactor indeed started to heat up, and soon badly radiated his neighborhood. His face was left permanently pocked with radiation burns.

In the end, Dave Hahn was forced to tear down his backyard nuclear reactor before it went critical, lest he create His Own Private Fukushima. Unfortunately for the evolutionary progress of mankind, the U.S. Environmental Protection Agency was neither very amused nor supportive, and designated Mr. Hahn’s mom’s backyard a Superfund Cleanup Site.

The point is, and Mr. Hahn’s experiments notwithstanding, we’ve had millennia and more to understand and adjust to fire. Our natural affinity for quotidian chemical reactions like fire has been hard-wired into us by hundreds of thousands of years of evolution.

Not so nuclear energy. Nuclear reactions are largely immune from standard human observations and inhabit a counter-intuitive realm outside our understanding of time and our other natural senses.

Splitting atoms will always be the work of a stranger in a strange land. Our best nuclear physicists understand this, and even use the language of explorers and mystics to announce their mysterious doings.

Enrico Fermi sustained the first atomic chain reaction in 1942. To announce his successful criticality experiment (conducted with Fermi’s trademark meticulous scientific procedure, by the way) one of Fermi’s lieutenants sent a coded message to the chairman of the U.S. National Defense Research Committee:

“The Italian navigator has landed in the New World.”

“How were the natives?” Fermi’s man was asked.

“Very friendly,” came the reply.

We now know that “the natives” simply were pretending to be friendly. In reality, the unstable uranium atoms and their by-products were killing Enrico Fermi.

Fermi died at age 53 of stomach cancer. He developed cancer from radiation poisoning while constructing his large “pile” reactor built from heavy graphite bricks and uranium beneath Stagg Field, the football stadium at the University of Chicago. Several of his assistants would also die of cancer.

Which brings us to Rules 7 and 8:

 

Rule 7:

There are no ‘safe’ levels of radiation.

The best current thinking about the risks of radiation exposure are expressed by what’s called the linear no-threshold model, first expressed decades ago by the late Dr. John Gofman, and later endorsed by groups as varied as the National Academy of Sciences and the United Nations Committee of the Effects of Atomic Radiation, the latter of which reports:

“the Committee believes that an increase in the risk of tumour induction proportionate to the radiation dose is consistent with developing knowledge and that it remains, accordingly, the most scientifically defensible approximation of low-dose response.”

In simple words, no amount of radiation is good for you. This includes natural background radiation.

This makes lots of intuitive sense. We now realize, for example, that tumors and melanomas can be produced from too much exposure to sunshine, and that a breakdown in the earth’s ozone layer can increase this risk.

So the idea that additional man-made radiation is safe is scientifically unsupportable.

So forget about that favorite ploy of the nuclear industry, comparing doses from nuclear meltdowns to dental or chest x-rays, or MRIs. None of it’s good for you.

Take, for another example, the lessons learned from Rule 8:

 

Rule 8:

Theoretical physicists live to a ripe old age, experimental physicists die of radiation poisoning. Ergo, stay away from nuclear accidents.

Albert Einstein checks for coated tongue: Hysteria = e = mc2


Students of history and nuclear physics know that theoretical physicists like Albert Einstein and Stephen Hawking, who work with mathematical calculations and who seldom venture near radioactive isotopes, live to ripe old ages.

Experimental physicists, like Marie Curie and Enrico Fermi, on the other hand, who work with the isotopes, have a tendency to die of radiation poisoning and cancer.

The same applies for journalists and landscape oil painters.

Therefore, Sanjay and Anderson, resist the urge to visit the vicinity of a nuclear power plant meltdown. Take it from me: you may get a by-line and a nice story exposing the apparent lies and confusion of the nuclear industry, but you’ll spend years worrying that you may have caused your body real harm.

Is a by-line, a story, or a book worth the risk? No.

 

The bottom line:
What can we predict from the Fukushima Experiment?

Less than three years after Enrico Fermi succeeded in building a nuclear reactor, physicists working on the first atomic bomb detonation in Alamogordo, New Mexico, on July 16, 1945, placed wagers among themselves about whether the first nuclear explosion, aptly code-named Trinity, might ignite the earth’s atmosphere or otherwise destroy our planet.

Gambling for their clothes and risking a lethal dose: Alamogordo A-bomb test.


J. Robert Oppenheimer, witnessing the awesome horror we mortals brought in the desert that night, famously quoted the ancient Bhagavad-Gita: “Now, I am become Death, the destroyer of worlds.”

And so we humans dare play with the fire of stars, and attempt to calculate inscrutable quantum probabilities, while the great mass of us can’t comprehend the simple 2 + 2 addition of balancing a household, or a national budget.

For me, the nuclear accident in Fukushima, Japan, permitted me to revisit and re-examine the wild, rollercoaster ride of emotions and perceptions I experienced during my own hometown’s nuclear disaster in 1979. I was able to see that my own response and impressions to a nuclear meltdown are universal and natural, and not held by myself alone, or other immediate victims.

Some of the similarities of both nuclear accidents are obvious: the utility executives who seem clueless about what’s going on inside the reactor and who seem unable to provide reliable information to the public or to speak truthfully about it; the government officials who seem equally clueless about what’s going on in the reactor and who send equally mixed signals; and the spectrum of equally posturing talking heads in the media who alternatively predict Armageddon, and then offer the incident as proof that nuclear energy is safe and friendly.

As we see with the ongoing Fukushima incident, a nuclear accident causes the whole planet to go wild with hysteria, not unlike our ancestors must’ve screeched from the trees when one of us first stepped up to a burning stick to curiously stare and wonder at the warmth of its blaze.

It seems to me that all humanity is in the same uneasy predicament I found myself contemplating on the morning of the Three Mile Island accident, when I had to decide in a split second whether to run, or to turn back to face an unknown monster. In so turning, I suppose, we not only confront our feeble humanity, we’re charting our destiny by the stars.

We have no choice but to turn and plant our foot firmly in the path of the horrible thing, and resolve to carefully try to understand it, and truthfully try to explain it to others.

That’s what made us, and makes us, human beings.

A simple uneasy truth remains: when a nuclear reactor melts, we find ourselves in the same unknown country of Fermi, Oppenheimer, and their associates, and the horrified control room operators at Three Mile Island, Chernobyl, and the Fukushima Daiichi nuclear power plants.

There is one haunting fact that is as accurate today as it was on July 16, 1945, when scientists lay in the sand of Alamogordo, New Mexico, protecting their eyes, awaiting the results of the first nuclear bomb test.

No one knows what will happen.

 

 

 

 

 

 

 

Bill Keisling is the author of two books on the Three Mile Island accident, and one book on solar energy. He covered the Three Mile Island accident for Rolling Stone, The Progressive, and Harrisburg magazines.

 


 

Additional notes and references:

1. The Atomic Energy Commission, by Corbin Allardice and Edward Trapnell, Praeger Publishers, 1974, page 32 and pages 163-168.

2. We Almost Lost Detroit, by John Fuller, Reader’s Digest Press, 1975, page 9.

3. The Atomic Energy Commission, by Corbin Allardice and Edward Trapnell, Praeger Publishers, 1974, page 32 and pages 44-77.

4. The Accident Hazards of Nuclear Power Plants, by Richard Webb, The University of Massachusetts Press, 1976, pages 187-189.

5. Nuclear Power: The Bargain We Can’t Afford, by Richard Morgan, Environmental Action Foundation, 1977, Chapter 5, Hidden Costs.

6. We Almost Lost Detroit, by John Fuller, Reader’s Digest Press, 1975, pages 57-61.

7. Nuclear Power: The Bargain We Can’t Afford, by Richard Morgan, Environmental Action Foundation, 1977, page 38.

8. The Blair Press, Blair, Pennsylvania, April 25, 1979, page 13.

9. We Almost Lost Detroit, by John Fuller, Reader’s Digest Press, 1975, pages 104-115.

10. We Almost Lost Detroit, by John Fuller, Reader’s Digest Press, 1975, pages 159-164.

11. The Accident Hazards of Nuclear Power Plants, by Richard Webb, The University of Massachusetts Press, 1976, pages 66-73.

12. Nuclear Power: Both Sides, the best arguments for and against the most controversial technology, by Michio Kaku and Jennifer Trainer, W.W. Norton & Co., 1982, page 21.

13. The Accident Hazards of Nuclear Power Plants, by Richard Webb, The University of Massachusetts Press, 1976, pages 66-73.

14. Einstein: Profile of the Man, by Peter Michelmore, Dodd, Mead and Company, 1962, pages 8-11; see also, Einstein, by Hilaire Cuny, Paul S. Eriksson, Inc., 1962, pages 81-84.

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A guest blogger on 'black swans' and Japan: tsunamis of bad news and ill winds for the US?

April 6th, 2011 No comments

Via an email from “OathKeepers”, I’ve just come across an interesting essay by one Brandon Smith (blogging as “Giordano Bruno”). Smith is the head writer and co-founder of neithercorp.us, a website which “specializes in alternative macroeconomic analysis as well as studies in mainstream media disinformation.” His articles are featured regularly at Infowars.com, Oathkeepers.org, Zerohedge.com, survivalblog.com, and G. Edward Griffin’s realityzone.com. Smith describes himself as :

a staunch Constitutionalist, free market champion, and proponent of sound money. In 2011, he is launching his new Alternative Market program in tandem with Stewart Rhodes of Oathkeepers with the aim of building gold, silver, and barter based systems in towns and cities across the country that will allow average Americans to finally take a lead role in the movement against globalism, providing for themselves what the current corrupt fiat system does not.

Supporting true, tangible community, enacting State sovereignty legislation, and promoting solid, decentralized local economies will be Brandon Smith’s primary focus in the foreseeable future

Here is the first part of a fairly long essay which I excerpt because of its connection to Japan; the rest of the essay is here. (The emphasis added is mine.). I note that while I find the content interesting, this cross-posting is not an endorsement.

Migration Of The Black Swans

By Giordano Bruno

Neithercorp Press – 3/31/2011

The phrase “Black Swan” is really making the rounds these last few months. Uttering the term a year ago would have earned you a collection of confused looks and a general attitude of disinterest. Now, people behave as if they had learned about economic shockwave events and the global domino effect when they were in kindergarten. The problem is that when this kind of terminology hits the mainstream, in most cases it comes prepackaged with dumbed down and diluted definitions which promote an inadequate, cartoonish understanding of the circumstances.

To be sure, most Americans are well aware that the world’s political and economic foundations are about as stable as fresh pudding under a heat lamp. The problem is that they are now being conditioned by the mainstream media to view the idea of collapse as “cinematic”; a kind of live action fantasy in which we all get to play the part of the audience, watching safely from the dark in our cushy theater seats with a bag of overpriced popcorn, Dolby surround sound, and a hot date to keep us company during the boring parts. Three years ago, even mentioning the idea of a breakdown in society or a financial catastrophe beyond a minor recession earned you the label of “doom monger”; a rather inept and naïve attempt on the part of the MSM to silence any economic analysis that stepped outside the establishment Keynesian framework. Today, I turn around to look at a magazine stand at the airport and right in front of me is Newsweek openly declaring “Apocalypse Now”!

Is the mainstream finally catching up to the alternative media? No. The MSM is merely adopting pieces of our common language and twisting them to fit a more globalist friendly viewpoint. Because our readership is growing exponentially, and our traffic is skyrocketing while corporatized news sources are floundering, the MSM is losing its ability to obscure our fact based journalism with their over funded and highly sterilized adaptation of reality. So instead, they attempt to co-opt our particular vocabulary, and our news focus, while adding their own subtle spin and sensationalism. When people not familiar with the alternative media and the more in-depth information we provide talk about a “Black Swan event”, a depression, hyperinflation, etc., their concept of the implications of such disasters is far different than ours. They are living in the Disney version of financial and social Armageddon.

Of course, when the curtains raise, the previews are over, and the show begins, none of us will be lounging comfortably outside these calamities to simply watch. We will all be inexorably involved, whether we like it or not. So, carry on with the media war we must. Educating the masses on the ENTIRE story behind international events and their consequences continues to stand as a top priority, until that final straw caves the camel’s back and disseminating the truth becomes a needless exercise in pointing out the horrifyingly obvious.

First, let’s examine the veiled reverberations of recent “Black Swan” events, the wider view of the chain that ties them together, as well as what we should expect in the near future in the wake of their aftermath…

Fukushima Mon Amour

If I could choose only one tragedy to be categorized as a textbook example of a Black Swan, it is the earthquake and subsequent tsunami off the coast of northern Japan which led to the current and precarious meltdown of the nuclear reactors at Fukushima. Now, the immediate concerns of Western nations, especially citizens of the U.S., have automatically turned to the threat of radioactive fallout traveling across the Pacific. Unfortunately, radioactivity is the least of our troubles in the face of Japanese nuclear core exposure. Again, Japan is currently the number three economy in the world, and the effects of the Fukushima incident have contributed to the possibility of a full spectrum crisis.

First, we must always keep in mind that incidents in areas like Japan or the Middle East are NOT the direct cause of global economic or social turmoil; they are only trigger points for an avalanche that has been building for the past three to four years. If Fukushima had occurred in 2007, international markets would have easily absorbed the blow, but today, economies everywhere have been so weakened by the implosion of the banker created derivatives bubble and the inflationary fiat measures of private organizations like the Federal Reserve that they no longer have the capacity to shield themselves from unexpected catastrophes. Big banks have been playing a massive game of Jenga with the global economy, pulling one support after another until the whole construct begins to sway and tremble. One gust of wind, one tremor, one wrong move, and the whole thing comes crashing down. If you want to place blame for the chaos we are about to see in the aftermath of Fukushima, be sure to place it where it belongs; on the doorstep of corporate monstrosities like the Fed, Goldman Sachs, JP Morgan, HSBC, etc.

Second, Japan’s official debt to GDP ratio now stands at 225%, way above the limit usually attributed to a country on the verge of complete debt destruction. The cost of rebuilding the areas damaged by the tsunami alone is estimated at around $300 billion. My primary concern in light of Japanese instability, though, is the severe weakening of their export markets. Japan is almost entirely reliant on its export capacity to support its ailing economy, meaning they are dependent on other countries to continually purchase their goods. However, in 2008, Japanese exports were pummeled, and have not improved anywhere near levels reached previous to the credit collapse, at least according to initial numbers for 2010:

http://www.bloomberg.com/news/2010-11-24/japan-export-growth-slows-more-than-forecast-as-economy-loses-trade-boost.html

The earthquake and nuclear meltdown of 2011 have sealed Japan’s fate. It could take ten, twenty, even thirty years for them to recuperate from this setback. Manufacturing in the Asian nation has already deteriorated at the fastest pace in nearly a decade:

http://www.bloomberg.com/news/2011-03-30/japan-manufacturing-shrinks-most-since-2009-in-first-sign-of-quake-impact.html

Japanese food exports are being shunned by international markets for fear of radioactive contamination. Prime Minister Naoto Khan [ed. : should be “Kan”] is now pleading with the WTO to urge its members to avoid curbing imports of Japanese goods, claiming that the government is on top of the Fukushima situation:

http://www.reuters.com/article/2011/03/30/us-japan-quake-idUSTRE72A0SS20110330

This hardly appears to be the case though. Reports of radioactive iodine 10,000 times safe levels in the water table below Fukushima have surfaced; reports which the Tokyo Electric Power Company is now vaguely stating “may be incorrect”:

http://www.bloomberg.com/news/2011-03-31/japan-reviewing-water-tests-showing-iodine-at-10-000-times-limit.html

The secrecy surrounding Japan’s nuclear meltdown is highly disconcerting and reminiscent of the Chernobyl incident in 1986, which the Soviet Union also refused to report honestly. Nearby cities were completely uninformed as to the true danger of the meltdown, and the international community was without a clue as to the extent of the radiation until Sweden, nearly seven hundred miles away, discovered radioactive particulates in its atmosphere. The problem with a containment breach in a nuclear plant is that it releases a steady stream of radioactive materials into the environment until the plant is finally buried under tons of concrete, lead, boric acid, and sand, as opposed to a nuclear weapon, which detonates, irradiating surrounding particles, which then dissipate after around two weeks. Fukushima, if left uncontained, could spew radioactivity for decades. The Japanese government does not seem to be providing forthright information about the real jeopardy involved.

Of course, if they were forthright, there would certainly be alarm amongst the citizenry, but even more so, a flight of investment dollars from Japanese industry and stocks. The only equity in Japan which seems to be attracting investment is the Yen itself, which skyrocketed against the U.S. dollar at the onset of the crisis:

http://www.rttnews.com/ArticleView.aspx?Id=1577203

The Yen has climbed steadily against the dollar since the early 1970’s, from 300 yen per dollar, to only 80 yen per dollar after Fukushima. I find it interesting that now, during times of financial uncertainty, global investors would rather pour their savings into the currency of a country that is about to be radioactive, rather than put their savings into the U.S. Greenback! What does that tell you about the level of trust the world currently has in our currency?

Being that Japan is a dedicated export economy, the higher the Yen goes, the more strenuous the exchange rate, and the less other countries will buy from them. G7 nations have since attempted to artificially knock down the rise of the Yen, but their efforts have yielded little success. The Yen still stands at around 83 per dollar. Hardly an improvement that will make Japanese exports more viable.

So, where is this all leading…? High speed deflationary depression for Japan. But that’s not all! The ASEAN trading bloc, led by China and fueled by the rising Yuan, has been pushing Japan to join the fold for years. Japan has been less than receptive to the proposition for numerous cultural, political, and financial reasons. But now, with the complete downfall of the country underway, and their export capability crumbling, Japan may go begging to join ASEAN. Already, ASEAN is beginning to offer help in Japan’s rebuilding process:

http://ph.news.yahoo.com/asean-benefit-japan-reconstruction-20110329-054529-485.html

What does this mean for the U.S.? It means the Japanese will likely begin a progressive dump of their vast reserves of U.S. Treasuries and dollars, replacing them with Yuan bonds. Its means a severe devaluation of the dollar in the near future along with the possible end to its World Reserve Currency status. It means hyperinflation in America. This is the true nature of a Black Swan event. It is not a single incident, but a chain reaction that spreads like cancer through an economic system, leading to broader misfortune than anyone dared imagine.

Once Upon A Time In The Middle East

The effects of the revolutionary fervor in the land of OPEC are a bit more obvious than those caused by Japan, at least, for the most part. Crude oil is now climbing towards $107 per barrel at the publishing of this piece. World markets are swinging wildly like a cheap carnival ride. Political alliances (especially between the U.S. and its primary oil suppliers) are becoming strained. The dollar’s peg to oil is now under threat. But this is really no surprise. As we have discussed in past articles, it is exactly what happened to the British Empire in the early 1950’s when it attempted to strong arm Middle Eastern governments and maintain the oil trade under the Pound Sterling. Eventually, the British became embroiled in Arab conflicts and revolts they could not possibly untangle, and their main debt holders (one of which was the United States) threatened to dump British Treasuries and the pound sterling as the world reserve currency. Sound familiar….?

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